Snapchat was designed from the beginning with privacy in mind, both for our community and our advertising partners. As signal loss has reshaped the digital advertising industry and limited advertisers’ ability to improve their ads via measurement and insights, investing in privacy-centric signal solutions that deliver strong performance has been a key focus. Our Conversions API (CAPI) is at the center of our privacy-centric ad platform solutions, allowing advertisers to send web events from their respective servers directly to Snapchat. The entire process is achieved without a reliance on browser-based tools, including cookies.
Recent improvements to CAPI, improved collaboration with advertisers, and growth in partner integrations resulted in CAPI integrations growing approximately 300% year-over-year in Q1 2024. Alongside our continued investments in Machine Learning models and increased demand for our direct-response solutions, this helped contribute to Snap growing revenue 21% year-over-year to reach $1.195 billion in Q1. In addition, we are seeing more advertisers on the platform as they find higher levels of success. Particularly amongst small- and medium-sized businesses, where the number of SMB advertisers on Snapchat grew 85% year-over-year in Q1.
Today, we’re partnering with Datahash to make it even easier for advertisers to adopt CAPI.
Datahash is a leader in the first-party data space and works with advertisers and top media agencies in over 50 countries and across key marketing channels. While it takes time and technical resources for advertisers to implement CAPI on their own, Datahash setups often take only about 15 minutes to get up and running, with no coding required. Alongside the rapid implementation speed, Datahash also delivers strong Event Quality Scores (EQS), a way to measure signal quality on Snap, of about 8 on average.
Advertisers want easy, privacy-safe solutions to use their signals to deliver personalized ads on Snapchat. Partnering with Datahash will enable any advertiser to quickly implement our CAPI solution – often in minutes – and begin taking advantage of improved ads performance. In fact, we see +25% improvements in purchase value and an 18% decrease in costs simultaneously, when advertisers have implemented both CAPI and the Snap Pixel. We’re thrilled to welcome Datahash on board as a CAPI partner and help clients get up and running!
Empowering Advertisers for the Future
CAPI helps advertisers of any size mitigate signal loss while optimizing their Snapchat campaigns for performance. As CAPI leverages first-party data instead of cookie-based identifiers, implementing CAPI helps provide advertisers with Strong Conversion Optimization, More Accurate ROAS reporting & Remarketing Campaign Enablement.
Web advertisers who have implemented CAPI on average increase their EQS by several points. This can have a significant impact, as web advertisers with an EQS of 5 saw a median ROAS increase of 26% compared to those with an EQS of 3¹. And when both CAPI and the Snap Pixel are integrated, advertisers see, at the median²:
CAPI Setup is crucially important for performance advertisers and Snap, and also urgent considering the sunset of Third Party Cookie on the horizon in early 2025. Through this partnership with Snap, Datahash aims to democratize the access of first party data by providing an affordable, unbundled, no-code Customer Data Platform to Small and Medium Business across the globe.
Web CAPI is one of several initiatives from Snap and Datahash. Together, we are offering marketers access to a full range of first-party setups including App CAPI, Offline CAPI and leads integrations, and Custom Audiences. Datahash serves them through a single, intuitive interface that integrates seamlessly with other advertiser systems, with minimal dependence on IT development, ultimately empowering advertisers to focus on their Snapchat campaigns and creatives.
Read more about Snap CAPI in Datahash’s whitepaper, Navigating a changing Digital Ecosystem, or reach out to your Snap Account Manager or Datahash team to get up and running on CAPI!