Snapchat Ads Strategies for Ecommerce Brands

Snapchat has become a powerhouse in the world of ecommerce advertising, offering businesses a direct line to younger audiences through creative and immersive ad formats. With over 443 million daily active users—a 9% growth as of October 2024—Snapchat Ads are more relevant than ever for brands seeking to engage Gen Z and Millennials.

This guide dives into the strategies ecommerce brands can use to optimize their Snapchat Ads, from leveraging the platform’s unique strengths to crafting campaigns that deliver measurable results. By harnessing the power of Snapchat advertising, businesses can drive awareness, boost conversions, and connect authentically with their target audiences.

Understanding the Value of Snapchat Ads for Ecommerce

Snapchat’s audience is not just vast but deeply engaged. These 443 million daily users spend significant time on the app, interacting with content and exploring brands in an organic, mobile-first environment. 

Innovations like Sponsored Snaps, which place ads directly within the chat tab, and Promoted Places on Snap Map allow brands to meet users where they are most active. These features make Snapchat an ideal choice for ecommerce businesses looking to combine broad reach with localized, direct engagement.

Snapchat’s audience is dominated by Gen Z and Millennials, groups with a combined buying power exceeding $5 trillion. These users are mobile-first, making Snapchat a natural extension of their shopping journey.

Ecommerce brands can use Dynamic Product Ads (DPAs) to target high-intent shoppers by showcasing products they’ve already browsed, while AR Lenses and Filters create engaging, interactive experiences. 

Imagine letting customers virtually try on sunglasses or see how furniture might look in their home—all within Snapchat. These tools don’t just grab attention; they drive conversions by making the shopping experience seamless and fun.

Building the Foundations for Success

Setting Campaign Goals

A clear strategy starts with defined objectives. Snapchat has streamlined its ad goals into three primary categories: Awareness, Consideration, and Conversions. 

Each aligns with key stages of the marketing funnel:

• Awareness campaigns build recognition for your brand.
• Consideration campaigns drive traffic to your website or app.
• Conversion campaigns focus on actions like purchases or sign-ups.

For ecommerce, aligning these goals with business objectives is essential. For instance, a beauty brand might use Awareness campaigns to launch a new product line and Conversion campaigns to retarget cart abandoners with limited-time offers.

Creative Requirements

Snapchat’s emphasis on personalization sets it apart. Tools like AI-generated content and the “My Selfie” feature let brands create ads tailored to individual users. For example, a fashion retailer could design an ad showing personalized outfit suggestions based on a customer’s past preferences.

However, personalization needs to be balanced with privacy. Complying with Snapchat’s guidelines not only protects user trust but also ensures your ads resonate authentically.

Technical Preparations

To maximize campaign impact, ecommerce brands need to lay the technical groundwork:

• Install Snap Pixel: This powerful tool tracks actions like “add-to-cart” and purchases, providing insights for optimization and enabling retargeting campaigns.
• Set Up Public Profiles: These act as a hub for your brand, allowing users to explore products, access promotions, and even directly interact with your business.

With these preparations in place, brands can ensure their campaigns are optimized for success.

Snapchat Ad Formats

Dynamic Product Ads (DPAs)

DPAs are a game-changer for ecommerce. By leveraging Snapchat’s enhanced machine learning models, these ads automatically show users products they’ve previously engaged with. This makes them perfect for retargeting high-intent shoppers and promoting catalog items at scale.

Single Image or Video Ads

For brands looking to drive website traffic or app installs, Single Image or Video Ads are ideal. These full-screen, vertical ads grab attention quickly and use a simple swipe-up CTA to guide users to your desired action.

Story Ads

Appearing in Snapchat Discover, Story Ads are designed to create excitement. Whether you’re launching a new collection or running a seasonal sale, branded tiles make it easy to showcase your message through a series of visually engaging images or videos.

AR Lenses and Filters

Snapchat’s advanced AR technology transforms ads into interactive experiences. Imagine a beauty brand letting users try on lipstick shades virtually, while a travel agency could use augmented reality to transport users to a virtual destination. These immersive formats drive engagement and are highly shareable.

Collection Ads

For ecommerce brands with multiple products to showcase, Collection Ads are a perfect fit. Featuring tappable product tiles, these ads make it easy for users to browse and shop without leaving the app.

Targeting Strategies for Ecommerce Brands

Behavioral and Interest-Based Targeting

Snapchat’s advanced machine learning algorithms allow brands to refine their targeting based on user behaviors and interests. A practical use case would be a fitness brand targeting users who frequently engage with health-related content.

Custom and Lookalike Audiences

Using Snap Audience Match, brands can upload customer data to retarget past buyers or site visitors. 

Meanwhile, Lookalike Audiences help expand reach by identifying users similar to your best-performing customers.

Location-Based Ads

Promoted Places take targeting a step further by leveraging geographic data. Whether you’re driving foot traffic to a local store or highlighting region-specific promotions, these ads connect your brand with users in the right place at the right time.

Crafting Winning Creative for Snapchat Ads

Best Practices for Visuals

The most successful Snapchat ads feel native to the platform. Keep your content short—ideally 5–6 seconds—and lead with a clear value proposition. Use bold visuals, authentic storytelling, and strong calls-to-action (CTAs) to grab attention immediately.

For instance, an ad promoting a flash sale might start with “Limited Time Only: 50% Off Your Favorites!” paired with product imagery and a swipe-up CTA leading directly to the sale page.

Leveraging AI for Creative Development

AI tools can help streamline the ad creation process by generating dynamic templates and variations tailored to different audience segments. This not only saves time but also allows brands to test and optimize creative at scale.

User-Generated Content (UGC)

Authenticity is a cornerstone of Snapchat’s appeal, and nothing feels more genuine than UGC. Studies show that 79% of users say UGC impacts their purchasing decisions

Encouraging your customers to share their experiences with your products—and incorporating these moments into your ads—builds trust and boosts engagement.

A skincare brand could feature real customers demonstrating how they use its products, creating relatable and persuasive content.

Budgeting and Scaling Snapchat Ad Campaigns

Successfully managing and scaling Snapchat advertising campaigns requires a balance of strategic bidding, ongoing optimization, and data-driven scaling. Whether your focus is on maximizing return on ad spend (ROAS) or expanding your audience reach, Snapchat’s tools and features are designed to help ecommerce brands achieve measurable growth.

Goal-Based Bidding: Optimizing Spend for Results

Snapchat’s Goal-Based Bidding empowers ecommerce brands to prioritize specific actions like swipe-ups, app installs, or purchases, ensuring every dollar spent directly contributes to campaign objectives. The platform offers three main bidding options, each suited to different strategies:

• Auto-Bidding: Ideal for maximizing outcomes within a fixed budget. Snapchat automatically adjusts bids to deliver the highest number of desired actions, making it a great starting point for businesses seeking efficiency.
• Max Bid: Provides precise control by allowing brands to cap the maximum bid per action. This ensures budget optimization without overspending.
• Target Cost Bidding: Keeps the average cost per action consistent, making it perfect for campaigns requiring predictable spending—such as maintaining profitability during a flash sale or peak shopping season.

So, an ecommerce fashion brand could use Target Cost Bidding to ensure consistent conversions while promoting a limited-time collection, maintaining a steady ROAS even during high-demand periods.

Measuring Campaign Success

Snapchat’s enhanced analytics tools make it easier than ever to measure campaign effectiveness. The Conversions API (CAPI) v3 provides more precise tracking of lower-funnel actions like purchases, ensuring brands can attribute sales to specific campaigns.

In Ads Manager, key metrics such as impressions, swipe-ups, and conversions offer a comprehensive view of performance. 

Monitoring these metrics regularly allows brands to fine-tune campaigns, reallocating resources to high-performing ads and pausing underperforming ones.

A/B Testing and Continuous Optimization

Testing and refining your campaigns is critical for sustainable growth on Snapchat. The platform’s Split Testing feature enables brands to experiment with different variables, such as:

• Ad creative and messaging
• Audience targeting parameters
• Placement options (e.g., Story Ads vs. Single Image Ads)

By running controlled, side-by-side comparisons, ecommerce brands can uncover valuable insights into what resonates most with their audience. You might discover that Story Ads drive higher engagement for product launches, while Dynamic Product Ads perform better for retargeting campaigns.

To go a step further, Campaign Lab leverages machine learning to identify trends and provide actionable recommendations. This tool is particularly effective for optimizing campaigns at scale, helping advertisers adapt to audience preferences and refine their strategies over time.

Scaling Successful Campaigns

Once a Snapchat ad campaign demonstrates strong results, the focus shifts to scaling while maintaining cost-efficiency. Snapchat’s Delivery Insights is a valuable resource for identifying top-performing campaigns by analyzing audience engagement, conversion rates, and overall return on investment.

Ecommerce brands can scale campaigns in two primary ways:

1. Increase Budgets: Gradually allocate more spend to high-performing campaigns, ensuring that the increase doesn’t disrupt profitability. Monitoring performance metrics closely during this process helps maintain consistent results.
2. Expand Targeting: Broaden the campaign’s reach by including new demographics, geographic areas, or interest groups. Expanding targeting should always align with the core audience insights gained from earlier tests.

Imagine a beauty brand that achieves success with a local campaign promoting a skincare product can scale nationally, leveraging the same creative elements while tailoring messaging to broader audiences. Similarly, adding geotargeting features like Snapchat’s Promoted Places can amplify results for physical stores.

Integrating Snapchat Ads into Your Ecommerce Strategy

Omnichannel Advertising: A Unified Approach

Snapchat Ads work best when integrated into a cohesive ecommerce strategy. Combining Snapchat with platforms like TikTok, Meta, and Google creates a seamless cross-platform experience that drives engagement and sales.

One approach is to use Snapchat Ads alongside Google Shopping to boost product visibility. 

Snapchat drives awareness and initial interest, while Google captures intent-driven searches, creating a full-funnel strategy. Similarly, pairing Snapchat Ads with Shopify enables brands to streamline the path to purchase, connecting Snapchat users directly to ecommerce sites.

Leveraging Dynamic Ads for Cross-Platform Consistency

Dynamic Ads ensure consistent branding by syncing with a brand’s Product Catalogs. This allows Snapchat campaigns to mirror promotions running on other platforms, maintaining a unified message. 

A retailer could use Snapchat’s Dynamic Product Ads to showcase the same discounts featured in an Instagram campaign, creating a cohesive customer journey across channels.

Common Pitfalls and How to Avoid Them

Underutilizing Targeting Options

Snapchat offers sophisticated targeting tools, but many brands fail to leverage them fully. Pixel-based retargeting, for instance, enables precise re-engagement with users who abandoned their carts or browsed specific products. 

Skipping these types of features means missing out on high-intent customers who are closer to conversion.

To avoid this, ensure the Snap Pixel is properly installed on your website and use Custom Audiences to re-engage visitors effectively.

Poor Creative Execution

Snapchat is a platform built on authenticity, and overly polished, generic ads often fail to resonate. Instead, ads should feel native to Snapchat, mimicking the style of organic content users are accustomed to.

Ecommerce brands should prioritize short, engaging visuals highlighting a clear value proposition. Ads that lead with a strong call-to-action (CTA) and incorporate user-generated content (UGC) are more likely to drive engagement.

Inefficient Budget Allocation

Spreading budgets thinly across multiple objectives dilutes the impact. Brands should focus on one stage of the funnel per campaign—such as dedicating a campaign exclusively to conversions or awareness, rather than trying to achieve both simultaneously.

Case Studies of Ecommerce Success with Snapchat Ads

Snapchat advertising has consistently proven its ability to deliver measurable results for ecommerce brands across industries. 

By leveraging innovative ad formats and engaging creative strategies, brands have successfully driven both awareness and conversions..

Oreo Ice Cream’s Playful AR Lens Drives Massive Engagement

Oreo Ice Cream turned to Snapchat to increase awareness of its product among UK and Irish consumers aged 18 and over. To achieve this, Oreo Ice Cream launched a multi-product campaign featuring Video Ads, AR Lenses, and Filters.

The most innovative part of the campaign was the Oreo Ice Hockey AR Lens, which transformed Oreo Ice Cream Minis into hockey pucks and invited users to play an interactive game. U

Users could also interact with a 3D Oreo crown in the Selfie Lens mode, surrounded by Oreo-colored confetti, creating a playful and immersive experience.

Results:

• 4 million unique Snapchatters engaged with the AR Lens, which generated 30 million plays and an average playtime of 11 seconds.
• The filter exceeded CPG benchmarks, reaching 900,000 users through friend shares and generating over 8 million interactions.
• These results reinforced Oreo Ice Cream’s playful brand identity while driving impressive upper-funnel metrics.

The campaign’s success highlights how Snapchat’s AR Lenses can captivate audiences and amplify brand messaging through gamified experiences.

Monster Energy Electrifies Engagement with Gamers

Monster Energy partnered with Snapchat to strengthen its brand affinity within the gaming community. Leveraging its partnership with the popular Call of Duty franchise, Monster aimed to create a campaign that bridged the gap between gaming and energy drinks.

The multi-product strategy included Snap Ads, unskippable commercials in Snapchat’s Snap Select Gaming bundle, and an interactive AR Lens designed to engage users in a playful, branded experience. 

Targeting gamers, energy drink consumers, and lapsed buyers, the campaign successfully reached high-value audiences.

Results:

• 3x ROAS, surpassing CPG benchmarks.
• A 30% sales lift driven by new or lapsed buyers showcasing the ability to reach untapped audiences.
• Users exposed to multiple ad formats were 2.2x more likely to engage, with the AR Lens alone delivering over 4x ROAS norms.

Combining Snapchat’s gaming-focused ad products with contextual targeting allowed Monster Energy to amplify its brand among a highly engaged demographic.

Sephora’s Multi-Format Success During Ramadan

During Ramadan, Sephora sought to position itself as the ultimate gifting destination. The campaign featured culturally relevant shopping experiences through Snapchat’s AR Lenses, influencer storytelling, and product education. 

Sephora also combined its Snapchat efforts with a broader omnichannel strategy, including in-store pop-ups and exclusive collections.

The Ramadan-themed AR Lens allowed users to interact with Sephora’s products in a festive and immersive way, aligning with the season’s spirit of giving.

Results:

• +12 points lift in brand awareness and +14 points lift in ad awareness.
• A 5.6% add-to-cart lift in Saudi Arabia.
• Sephora achieved the highest incremental reach over TV among social platforms, boosting its standing as a top choice for Ramadan gifting.

This campaign demonstrated the effectiveness of Snapchat as a platform to integrate online and offline experiences while capitalizing on cultural moments.

Maximizing the Potential of Snapchat Ads

By tapping into Snapchat’s immersive features and innovative ad formats, brands have an unparalleled opportunity to connect with younger, mobile-first consumers in a way that feels personal and authentic.

But what’s more, the platform’s ability to blend interactivity, personalization, and data-driven targeting signals a shift in consumer expectations. Today’s shoppers don’t just want to be sold to—they want experiences. 

Whether it’s virtually trying on a product, playing an interactive game, or discovering a brand through a culturally relevant campaign, Snapchat Ads create moments that resonate.

For ecommerce brands, this means moving beyond traditional advertising to fully embrace the platform’s tools and creativity. Those willing to experiment, refine, and scale their Snapchat strategies stand to gain not just conversions but lasting connections with the next generation of consumers.

As Snapchat continues to evolve with advancements in AR, machine learning, and personalization, the possibilities for ecommerce brands are boundless. The challenge now is not simply to advertise on Snapchat but to innovate on it.

About the Author: As the Director, Marketing at adQuadrant, Nick Grant leverages more than 20 years of experience working across a variety of tech verticals. Nick grew up in California and earned his BS in Business with a concentration in Entrepreneurship. After college, he relocated to Seattle to pursue his passion for startups, where he worked at various dot-coms before co-founding a successful visual strategy agency in 2010. Now back in California, Nick spends his time hiking around San Luis Obispo County with his wife and son, honing his talent as a concert photographer, and perfecting his handstand skills.