A new Market Mix Modeling (MMM) analysis conducted by Snapchat in partnership with Omnicom Media Group (OMG) and Annalect reveals that Snapchat delivers superior return on investment compared to other media channels in Gulf Cooperation Council (GCC) markets.
When comparing ROIs across various media categories—offline, digital non-social, social media, and Snapchat—the study demonstrates that Snapchat surpasses the average ROI benchmark by 14%.
The analysis found that while brands allocated an average of 8% of their media budgets to Snapchat, the platform delivered 10% of media-driven sales. When compared to other digital channels, Snapchat’s ROI exceeded non-social digital platforms by 12% and other social media platforms by 7%.
The research shows that approximately one-third of a brand’s business relies on its media activities, with digital media accounting for the majority of this impact. Digital media contributes 29.3% to incremental sales, significantly outperforming offline media’s 4.9% contribution.
Within the digital sphere, social media platforms play a key role in shaping consumer behavior in GCC countries. The research indicates that Snapchat accounts for approximately 3.2% of overall brand sales, representing around 25% of the total contribution from social platforms.
Image source: Snapchat
User Engagement Drives Performance
Snapchat’s effectiveness stems partly from its exceptionally high level of user engagement. According to research conducted by Amplified Intelligence, cited in the report, consumers paid five times more active attention to ads on Snapchat compared to Social Mobile In-feed video ads.
The study defines “Active Viewing” as the percentage of time a viewer’s eyes are on both the screen and the ad. Snapchat achieves 78% active viewing compared to 15% for social mobile in-feed content.
In Saudi Arabia, Snapchat is identified as the leading platform for staying connected with family and friends, providing brands a unique opportunity to foster both short-term and long-term engagement.
The analysis also highlights untapped growth potential on Snapchat, even before the market reaches saturation. The study suggests that by doubling their advertising expenditure on the platform, these brands can achieve an average sales increase of 110%, with growth rates ranging from 26% to 219%.
Industry-Specific Performance and Budget Allocation
The study covers four industries: Telecommunications, Financial Services, Fast Food, and Over-the-Top (OTT) platforms, drawing data from both Saudi Arabia and Kuwait.
For OTT brands specifically, Snapchat demonstrated strong efficiency in consideration campaigns and driving subscriptions. Case studies from TOD in Kuwait and OSN+ in Saudi Arabia showed that Snapchat delivered 1.64x and 1.27x higher efficiency, respectively, than the benchmark channel with the lowest ROI.
Cross-category studies demonstrated that brands adopting a full-funnel approach on Snapchat—allocating between 40% to 70% of their budget to upper-funnel initiatives while consistently supporting mid- to lower-funnel strategies throughout the year—achieve an ROI 1.5 times higher than those pursuing singular objectives.
According to Snapchat’s Performance Pillars Analysis, balanced allocation across different ad formats is recommended, with no more than 60% of the cross-campaign budget allocated to Snap Ads, up to 40% to Story Ads, and 10-20% to AR Lenses and Filters.
A new Market Mix Modeling (MMM) analysis conducted by Snapchat in partnership with Omnicom Media Group (OMG) and Annalect reveals that Snapchat delivers superior return on investment compared to other media channels in Gulf Cooperation Council (GCC) markets.
When comparing ROIs across various media categories—offline, digital non-social, social media, and Snapchat—the study demonstrates that Snapchat surpasses the average ROI benchmark by 14%.
The analysis found that while brands allocated an average of 8% of their media budgets to Snapchat, the platform delivered 10% of media-driven sales. When compared to other digital channels, Snapchat’s ROI exceeded non-social digital platforms by 12% and other social media platforms by 7%.
The research shows that approximately one-third of a brand’s business relies on its media activities, with digital media accounting for the majority of this impact. Digital media contributes 29.3% to incremental sales, significantly outperforming offline media’s 4.9% contribution.
Within the digital sphere, social media platforms play a key role in shaping consumer behavior in GCC countries. The research indicates that Snapchat accounts for approximately 3.2% of overall brand sales, representing around 25% of the total contribution from social platforms.
Image source: Snapchat
User Engagement Drives Performance
Snapchat’s effectiveness stems partly from its exceptionally high level of user engagement. According to research conducted by Amplified Intelligence, cited in the report, consumers paid five times more active attention to ads on Snapchat compared to Social Mobile In-feed video ads.
The study defines “Active Viewing” as the percentage of time a viewer’s eyes are on both the screen and the ad. Snapchat achieves 78% active viewing compared to 15% for social mobile in-feed content.
In Saudi Arabia, Snapchat is identified as the leading platform for staying connected with family and friends, providing brands a unique opportunity to foster both short-term and long-term engagement.
The analysis also highlights untapped growth potential on Snapchat, even before the market reaches saturation. The study suggests that by doubling their advertising expenditure on the platform, these brands can achieve an average sales increase of 110%, with growth rates ranging from 26% to 219%.
Industry-Specific Performance and Budget Allocation
The study covers four industries: Telecommunications, Financial Services, Fast Food, and Over-the-Top (OTT) platforms, drawing data from both Saudi Arabia and Kuwait.
For OTT brands specifically, Snapchat demonstrated strong efficiency in consideration campaigns and driving subscriptions. Case studies from TOD in Kuwait and OSN+ in Saudi Arabia showed that Snapchat delivered 1.64x and 1.27x higher efficiency, respectively, than the benchmark channel with the lowest ROI.
Cross-category studies demonstrated that brands adopting a full-funnel approach on Snapchat—allocating between 40% to 70% of their budget to upper-funnel initiatives while consistently supporting mid- to lower-funnel strategies throughout the year—achieve an ROI 1.5 times higher than those pursuing singular objectives.
According to Snapchat’s Performance Pillars Analysis, balanced allocation across different ad formats is recommended, with no more than 60% of the cross-campaign budget allocated to Snap Ads, up to 40% to Story Ads, and 10-20% to AR Lenses and Filters.
The full research is available here.