Multiply the moment: four factors that drive higher ROI this shopping season, by Snap’s Farimah Moeini

Farimah Moeini, head of industry - retail, e-commerce, travel tourism in MENA, Snap Inc gives four formulas to drive higher ROI this shopping season.

This year’s fall shopping season is one of the most anticipated in recent years. The enthusiasm is driven by a combination of increased optimism post-Covid, the incredible growth of social commerce, and the immersive shopping experiences now possible through augmented reality (AR).

As marketeers in the region bring their campaigns to life, many have turned to Snapchat to cut through the noise and multiply their ROI. In particular, we’ve identified four important formulas that work hand in hand to deliver this multiplication effect — the Snap X Effect.

Valuable Audiences X Shopping Season = ROI

A campaign’s success begins and ends by being able to reach your most valued audience. It is why brands increasingly come to Snapchat, with a rapidly growing community in MENA that holds massive spending power. Snapchat’s monthly addressable reach in the MENA region has now grown to over 75 million, a 33% YoY growth from 2020. Furthermore, the discretionary spending power for the Snapchat Generation in MENA has hit a whopping $425 billion. This is good news for regional retailers as Snapchatters on average shop 30% more online than other consumers.

Power of Friends X Shopping Season = ROI

Friends and family remain the most trusted sources of brand information. In fact, consumers have been shown to spend twice as much when a friend has referred a product. Tapping into this word of mouth can be optimized on platforms like Snapchat that are inherently built around real friends. Accordingly, research shows that Snapchatters in markets like the UAE are 69% more likely than non-Snapchatters to recommend products to friends and family.

Immersive Experiences X Shopping Season = ROI

Augmented reality creates truly interactive shopping experiences. It converts bland ad messages into immersive, contextual experiences that help users connect with brands at a more personal level. This has turned millions of passive mobile users into active consumers. As just one example, 8 out of 10 Saudi consumers say they are likely to make a purchase after using branded AR to help them shop. AR also bridges the gap between traditional brick and mortar retail and e-commerce, allowing consumers to virtually experience and try on products before buying. This transparency has the secondary effect of mitigating the cost associated with returns, which cost global retailers $550 billion annually.  Equally important is how these experiences are consumed on mobile. Campaigns optimized for vertical video are resonating with audiences who overwhelmingly want to consume content without rotating their phones 90 degrees. This translates into full-screen vertical ads on Snapchat that drive double the amount of awareness than other platforms.

Relevance X Shopping Season = ROI

As opposed to the rest of the year when purchases are more sporadic, the fall shopping season is marked by regular purchases throughout the period. An effective advertising campaign must therefore maintain customer attention for months, and relevance comes from exposure to the right format. Whether through immersive videos, stories or branded AR experiences, it’s all about reaching consumers where they are. With the right creative in the right format, advertisers can more effectively deliver on a combination of brand, product, or awareness objectives, significantly higher than traditional media. For example, Snapchatters exposed to campaigns that leverage multiple ad products drive 2x the lift in action intent compared to those that leverage only one ad product.

In the end, consumers want inspired shopping experiences that align with how they live, not the other way around. The four formulas detailed above–working together–can have a profound multiplication effect. One that only Snapchat can deliver.