Snapchat might not seem like the most natural home for financial services startups, but a growing group of companies is finding success advertising on the social media platform.
Implementing digital marketing strategies for Snapchat has helped them improve brand awareness and business growth.
Snapchat’s core user ecosystem is exactly the target audience that many major fintech startups are after.
It's composed mainly of Gen Z and younger millennials who are still new to the financial services world and are eager to find easy-to-use banking, payment, and money-management solutions. They're even looking into cryptocurrencies, like Bitcoin.
A recent estimate pegged Snapchat’s Gen Z users at 42 million in the U.S., compared to 37.3 million for TikTok. This huge pool of users is perfect for financial institutions, especially for lead generation and new customer acquisition.
Snapchat ads are really effective. Jason Wong, a growth marketer, entrepreneur, and influencer, said last year that marketers are “still sleeping” on Snapchat ads.
Wong's testimonial on Twitter said they tend to cost less than ads on rival social platforms, yet they reach a vast group of Gen Z and millennials.
One case study that Snapchat released in December 2021 said that CPG brands saw double the return on investment compared to other social platforms.
Lately, Snapchat has been courting financial technology companies to use its mobile app:
Snapchat offers different ad types that are ideal for different marketing techniques:
These are Snapchat's most prominent ads, which are quick videos that pop up as users are clicking through Snap Stories.
These feature a carousel of products and solutions available for purchase at the bottom. This gives Snapchatters a frictionless way to browse and buy.
These are more like user experiences that let people interact directly with the ad. Fintech brands can create branded memorable, interactive moments that Snapchatters can engage with.
These are essentially branded overlays. When users send their selfies to friends, they can swipe through possible filters to add to the image. Brands can sponsor one of these filters.
Fintech companies have the option to choose from the various formats. Many companies in the fintech industry have found success using Filter Ads and Story Ads in their branding strategies.
Want to know how else you can make your Snapchat ads stand out? Here are a couple of tips to help you utilize Snapchat's marketing tools:
Fintech brands are first and foremost trying to get people to download their apps. That’s why, for fintech marketing campaigns, adding Swipe Up attachments to advertisements is a must. The Swipe Up can direct users to another URL or an app install page.
Beem It, an app that splits payments between groups of friends ran a major ad campaign in 2021 across Facebook, Instagram, Snapchat, and TikTok. On Snapchat, it used Story Ads with a Swipe Up, and it said the cost per app install was 85% less than on other platforms.
Many financial services companies are highly localized, and their marketing tactics involve running ad campaigns that only reach people in specific geographies.
Some regional credit unions, like the Pasadena-based Wescom Central Credit Union, have run location-based Filter Ads.
Snapchat’s Location Targeting feature lets people limit their ads not just to certain cities or postal codes, but to people who are at certain addresses or at a certain latitude and longitude points.
The End Result: If a fintech company sees a lot of opportunity among Snapchatters who are posting from, say, the Brooklyn Nets game, it can buy Filter Ads specifically for that location.
Brands who use Snapchat for business should make sure they have teams in place to answer an influx of customer inquiries.