The number of daily active users on the platform is up about 23% from last year and engagement is high.

Last year we tracked how the company responded to the coronavirus crisis. This serves as a check-in to see which advertisers are increasing their spend most on the platform, and which have dropped their spend.

We encourage you to subscribe to our blog for the latest data surrounding the advertising industry. We will provide daily updates as COVID-19 continues to make its mark on the US economy.

Snapchat amid the pandemic

Snapchat activity increased when social distancing became the norm. 

Primarily, individuals used texting and video calls to connect with close ones in new ways. Snap’s fun games and augmented reality (AR) filters set the platform apart from other social platforms. 

But it’s not just the direct lines of communication between people that boost engagement.

Snap detailed the changes in behavior they observed amid the pandemic. In addition to more direct communication between friends, people increasingly used the platform as a way to:

• Stay informed on COVID
• Use its “Here for you” mental health tools 
• Watch snapchat shows
• Shop online
• Connect with food delivery services

Snap users also engaged with advertisements more. An analysis comparing late March to late February revealed that there was a 36% increase in install volume for app ads and a 19% increase in swipe-up rate.

In response to COVID, Snapchat partnered with local health agencies to help get PSA’s out about the virus. The company created new AR filters to support the World Health Organization’s response efforts. Users use the filters to donate to patient care, medical supplies or research and development. 

Two months ago, Snap expanded its ad offerings by releasing more eCommerce and AR shopping tools. They purchased Fit Analytics, which enables users to find apparel and shoes that will fit comfortably. As advertisers see success using these tools, we’ll surely see Snap targeting more advertisers who could also benefit.

MediaRadar Insights (2021 Update)

Brands Increasing Their Spend

Between April and July 2021, top advertisers who are consistently increasing their spend month over month are: Apple, Theragun, Netflix and Invisalign.

Between June and July:

• Apple increased spend by 75% 
• Theragun increased spend by 200%
• Netflix increased spend by 100%
• Invisalign increased spend by 100%

Brands Cutting Their Spend

Though TikTok used to be one of Snapchat’s biggest advertisers, it’s spending very little on the platform now. Less than 1% of TikTok’s spend was spent on Snapchat throughout Q2 and the beginning of Q3. More of TikTok’s budget is now being spent on Facebook.

Last March Twitch increased their spend by 35% month-over-month. Since then, however, spending has cooled down. The company’s overall advertising spend has fallen 85% year-over-year (April – July, 2020 vs 2021)—none of which has been on Snapchat.

The U.S. Army, which moved to digital during the pandemic, has recently changed the direction of their spending. Lately, they’ve moved much of their spend from digital into TV. None of their advertising spend was invested with Snapchat from April – July 2021.

With Snapchat’s new AR tools and increased user activity, the social media platform is in a good position heading into Q4. Though some brands are shifting to other channels, the company has unique and dynamic ad capabilities ideal for consumer brands. 

For more updates like this, stay tuned. Subscribe to our blog for more updates on coronavirus and its mark on the economy.

TikTok was the most downloaded app of its kind last year, with more than 82 million downloads, and it continues to gain traction from consumers and advertisers every day.

As the social media app matures, it has quickly become a platform used to drive fashion trends among the Gen Z audience. 

Retail advertisers are expected to spend a huge amount of money on TikTok via influencers or ad placements. How are they currently spending on digital advertising as a whole and other formats?

TikTok is perhaps the most powerful influencer marketing tool for retail

We’ve known that influencer marketing is powerful—but it has risen to a whole new level with TikTok. A quick video of a creator dancing can cause a massive sellout of the latest clothing piece. 

When Hannah Schlenker danced to Drummer Boy, wearing unique leggings from Aerie, the video sparked over ten thousand comments. It was a lucky day for Aerie: the pants quickly sold out and caused the company email inbox to fill up with over 130,000 waitlist requests. 

MorningBrew spoke to American Eagle CMO Craig Brommers who commented, “What TikTok creators wear, American Eagle sells.”

Teens go to TikTok to see what fashion is trending under hashtags, like #fashionhauls and #OOTD (outfit of the day). 

“TikTok has the ability to make something go viral much quicker than anything we see on Instagram,” said Jessica Ramirez, retail research analyst, CNBC. “For retailers, that is a huge advantage.”

TikTok knows its power. Even though its model is not as mature as Facebook’s yet, it’s charging up to $2 million a day for top advertising spots later this year. And a hashtag challenge that lasts three days can cost a brand $500,000, not including the production and creator fees. 

Those advertising numbers may be a big barrier for smaller brands, but TikTok is partnering with local organizations and small businesses to train them on successful influencer marketing practices. 

“Businesses of all sizes are using the magic of the TikTok community to reach new audiences and expand their business — whether it’s a startup or an iconic local business,” said Becca Sawyer, TikTok’s Global Head of SMB. “Our goal is to give every business owner in America the same opportunities as the biggest brands and to help them turn their dreams into a reality.”

According to eMarketer/Insider Intelligence, U.S. spending on influencer marketing across social media will come close to $4 billion this year. This is an increase of 34% from last year. 

As retail brands gear up for this increased spending, let’s take a look at current advertising trends.

MediaRadar Insights

Overall, we’ve seen the retail sector slightly reduce their spending so far this year compared to last. 3.2k apparel brands have spent $529.7mm on advertising across print, television and digital formats so far. This is a decrease of 6% in spend from 2020, when 2.5k brands spent $565.3mm.

When we look closer at the different formats, we can identify certain patterns. 

Trend #1: Print is Down

All of the lost spending from retail has come from print. Print spending has fallen from $340.5mm in 2020 to $249.4mm in 2021. 

But print isn’t obsolete among some brands.

Top fashion houses continue to heavily invest in print advertising. Print spend from Louis Vuitton, Dior, Gucci, Chanel, Prada and Hermes totaled $95.9mm, 38% of all apparel print spending in 2021 so far.

But that doesn’t mean they aren’t shifting some of their budgets.

Luxury brands, such as Louis Vuitton, Fendi and Gucci, joined TikTok last year. Though most of these brands have been slow to gain followers, some are leading the way in hashtag challenges and influencer marketing. 

Moncler put together a powerful hashtag challenge in December featuring top influencers, including Charli D’Amelio. Moncler said the challenge brought in over 2 billion views only four days after launching. Perhaps it won’t be long before top fashion designers start shifting more spending over to the platform. 

Trend #2: Digital is Up

Spending in the digital format is on the rise among most brands. Spending has increased 38% to $229mm this year.

Companies who’ve only advertised in digital and who have a stronger social media presence include: 

• Adore Me
• Nike Sportswear
• Hollister
• Girlfriend Collective
• Ann Taylor. 

Their digital spend totals $17.05mm.

Our main takeaway here is that though the retail category reduced their overall spending, most of the drop came from print. The digital space, however, is seeing an increase in advertisers and spending. As more consumers flock to TikTok and its competitors, growth is only expected to continue. 

For more updates like this, stay tuned. Subscribe to our blog for more updates.