Snapchat Testing Social Commerce Options

January 16, 2017, Written By John H. Oldshue

Snapchat’s parent company Snap Inc. is testing deep linking and auto-filling, two advertising tactics, to increase its social commerce capabilities.

Facebook, Instagram and Twitter users are already familiar with deep linking, as it allows marketers to run interactive ads on users’ feeds. The user can then swipe or tap to view the product details and visit the item’s webpage, where they will ideally purchase the product.

In addition to testing ads, Snapchat is testing an auto-fill feature. This will allow users to fill out their payment information with the contact data they provided Snapchat when purchasing an item through the app.

While Snapchat is not quite up to Pinterest, Instagram and Facebook’s commerce infrastructure, experts believe Snapchat’s user interface gives it a competitive edge.

“Snap’s new features make its advertising platform more amenable to the type of direct response advertising that could make it a social commerce player,” eMarketer analyst Yory Wurmser told PYMNTs.com. “Mobile retail above all is about relevant, compelling images and simplicity.”

Marketing experts also believe Snapchat’s demographic, mostly teens and Millennials, is particularly attractive to a number of brands.

“The appeal to reach a younger demographic will be high, especially among lifestyle brands that want to engage and sell to digital natives,” Mike Rowland, director in West Monroe Partners’ Customer Experience practice, told The Street. “There is a logical opportunity in Snapchat’s Discover channel where users can ‘discover’ new products. The addition of a buy button here is natural.”

Social media commerce has been on the rise in recent years, particularly in Southeast Asia, where 30% of all online sales occurred on a social media network. 80% of consumers in Southeast Asia use social media to research products and contact vendors.

This has not been the case in the United States. According to GlobalWebIndex, only 7% of the 287 million Internet users are using social media to make purchases. A Sumo Heavy study put that number at 18.2%. Whichever figure is correct, the United States is not using social medial commerce as much as other countries.



The information contained within this article was accurate as of January 16, 2017. For up-to-date
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About John H. Oldshue

John Oldshue is the creator of LowCards.com. He worked for over 15 years in television and won an Emmy award for his reporting. He covers credit card rate issues for LowCards.com.
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