Study Finds Snapchat Ads Outperform Social Blends on ROI
Snapchat delivers a 19.3% higher incremental return on ad spend than the social media average, according to a new study that suggests the platform is fundamentally undervalued by retail marketers.
Snapchat accounts for just 5% of social ad spend among 130 major ecommerce brands but generates a median incremental return on ad spend (iROAS) of $2.84, according to a new study by analytics firm Measured. That figure is 19.3% higher than the blended incremental return across all social advertising for the same group. The data suggests the platform remains significantly underweighted in marketing budgets relative to its actual performance.
The findings carry implications for how retail executives allocate capital across digital channels, particularly as the industry shifts away from flawed attribution models. “Globally you’ll have over $1 trillion dollars spent on media this year,” said Trevor Testwuide, Measured CEO. “You still have so many brands that are spending $50 million, $75 million, hundreds of millions of dollars, leveraging these last touch metrics that do not accurately represent the contribution.”
Beyond direct returns, the Measured study identified a “meaningful halo effect” from Snapchat advertising. Brands that invested in the platform saw incremental returns across their broader search and social channels jump 12.9% compared to those that did not. Because the surveyed brands allocated more than 63% of their total advertising budgets to search and social, even modest efficiency gains in these dominant areas can substantially improve overall marketing returns.
The platform's improved performance follows a suite of product updates introduced last May, including goal-based bidding, expanded Sponsored Snap formats, and AI-powered budget optimization. Following those changes, Snapchat adoption among Measured customers rose 11.1%, while median iROAS climbed 36.2%. “I think this will highlight to the industry, agencies and brands that we rebuilt the ad platform,” said Adrian Mulryan, head of global agency and strategic accounts at Snapchat.
The underallocation appears rooted in perception rather than audience limitations. Sonia Lapinsky, a retail managing director at Alix Partners, noted that retailers often assume larger platforms yield better returns. However, teenagers spend five hours daily on social media, with Snapchat ranking third, ahead of Instagram and Facebook. Furthermore, 92% of Snapchat users include friends in their shopping journeys, and 73% recommend brands to family, fueling organic discovery in fashion, beauty, and gaming.
Snapchat executives argue the data proves the platform can drive results at scale, challenging the industry's reliance on last-click attribution. “We’re trying to tell the market that the last click is updated,” Mulryan said. “We’ll demonstrate across the platform that there’s an incrementality there and that we can drive deeper results.”
