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Snapchat AdsRL
Snapchat Ads5 min read

Why Smart Brands Are Shifting Budget to Snapchat Ads

Snapchat CPMs are 40-60% lower than Meta, and Gen Z engagement is through the roof. Here's why it deserves a spot in your media mix.

RL

ROIlabs Team

October 22, 2025

While everyone fights over the same Meta and Google inventory, a massive opportunity is hiding in plain sight. Snapchat's ad platform has matured significantly, and the brands taking it seriously are seeing incredible returns.

The Snapchat Opportunity

Here are the numbers most marketers don't know:

  • 800M+ monthly active users globally
  • 75% of 13-34 year olds in 25+ countries use Snapchat
  • CPMs 40-60% lower than Meta in most verticals
  • Average daily time: 40+ minutes — this isn't a "check and leave" app

Who Should Advertise on Snapchat

Snapchat works particularly well for:

  • DTC brands targeting under-35 demographics
  • Fashion, beauty, and lifestyle brands
  • Apps and games (Snapchat's app install costs are among the lowest)
  • Local businesses targeting younger audiences
  • E-commerce brands with visual products

Campaign Types That Work

Story Ads

Full-screen vertical video ads between friends' stories. These feel native and drive strong engagement. Best for:

  • Brand awareness
  • Product launches
  • Driving traffic

Collection Ads

Showcase multiple products in a tileable format. Users can tap to browse and purchase. Ideal for:

  • E-commerce catalogs
  • Seasonal collections
  • Best-seller highlights

AR Lens Campaigns

This is Snapchat's secret weapon. Branded AR lenses create interactive experiences that users voluntarily engage with and share. We've seen:

  • 10x higher engagement than standard ads
  • Average play time of 20+ seconds per interaction
  • Organic sharing that extends reach beyond paid impressions

Dynamic Ads

Automatically generated from your product catalog, served to users most likely to purchase. Similar to Meta's DPA but with less competition and lower CPMs.

Getting Started

The Minimum Viable Setup

  1. Install the Snap Pixel on your website
  2. Connect your product catalog (for e-commerce)
  3. Create 3-5 vertical video ads (1080x1920)
  4. Start with a Story Ads campaign targeting broadly
  5. Budget: $50-100/day to start — enough for the algorithm to learn

Creative Best Practices

Snapchat creative is different from Meta:

  • Vertical only — 9:16 aspect ratio
  • Sound-on environment — 60%+ of users watch with sound
  • First 2 seconds are critical — even more so than Meta
  • Native feel — ads that look like content outperform polished ads
  • Include a clear CTA overlay — Snapchat's swipe-up mechanic needs prompting

What We're Seeing

For clients where we've added Snapchat to their media mix:

  • 22% lower blended CPA across all channels
  • 3.8x ROAS on Snapchat specifically
  • 35% of new customers are incremental (wouldn't have been reached on Meta)

The Bottom Line

Snapchat isn't a Meta replacement — it's a powerful complement. The brands diversifying their media mix now are building a competitive advantage that will compound over time.


Curious if Snapchat could work for your brand? Get a free media mix analysis.

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