Uncovering
Snapchat’s
ROI in the GCC

Social media has revolutionized how brands engage with their audiences, and Snapchat has emerged as a key player in this transformation. The platform’s immersive content formats, including Snap Ads and Augmented Reality (AR) Lenses, offer a unique and engaging way for brands to connect with consumers. With Gen Z and millennials making up nearly 75%¹ of its user base, Snapchat provides an ideal environment for brands to capture attention and drive meaningful interactions. The research revealed that Snapchat contributed 3.2%² of total brand sales, accounting for a quarter of the total contribution from social platforms.

When evaluating media effectiveness by comparing ROIs across media groups — offline, digital non-social, social media, and Snapchat, Snapchat led with an ROI 14% above. Additionally, despite receiving only 8% of brands' total ad spend, Snapchat contributes to 10% of all media-driven sales, further demonstrating its ability to deliver superior results. What sets Snapchat apart is its ability to capture and retain user attention. According to research by Amplified Intelligence, consumers pay five times more active attention to ads on Snapchat compared to other mobile in-feed video ads, reinforcing its position as a highly engaging advertising channel.

For brands looking to harness the full potential of Snapchat, strategic budget allocation is key. According to the MMM analysis, doubling the spend across these brands is projected to drive an average sales increase of 110% proving that many brands have yet to tap into the full power of Snapchat’s advertising ecosystem.

A well-balanced budget strategy can make all the difference. According to Snapchat’s Performance Pillars Analysis,³ brands should allocate up to 60% of their budget to Snap Ads, ensuring cost efficiency while maximizing reach. Story Ads, which enhance visibility and engagement, should receive around 40% of the budget. Interactive AR Lenses and Filters, known for their high engagement potential, should be allocated 10-20%, with flexibility to increase if costs remain favorable. Takeover products can be used strategically, but should not exceed 30% of the budget unless proven to drive long-term ROI. Similarly, premium ad placements should be balanced with cost-efficient buys, ensuring that CPM rates remain within 40-50% of standard Snap Ads pricing.

Additionally, a full-funnel approach—where 40-70% of the budget is directed toward upper-funnel initiatives while maintaining consistent investment in mid- and lower-funnel activities—has been found to increase ROI by 1.5 times compared to single-objective campaigns.

The impact of Snapchat’s advertising solutions is evident across multiple sectors. In the Over-the-Top (OTT) streaming industry, companies such as TOD and OSN+ have seen remarkable results. In Kuwait, TOD achieved 1.64 times higher efficiency compared to the lowest ROI channel, while OSN+ in Saudi Arabia demonstrated a 1.27 times increase in efficiency, reinforcing Snapchat’s effectiveness in driving consideration and conversions.

The telecommunications sector also benefited significantly. Yaqoot, a Saudi-based telecom brand, leveraged Snapchat to drive 18% of all social media-driven SIM activations. Furthermore, the platform demonstrated 35% higher efficiency than the overall media benchmark, showcasing its ability to generate tangible results in competitive markets.

In financial services, Tamam, a Saudi loan provider, saw 31% of its social media-driven loan applications come from Snapchat campaigns. Notably, its conversion-focused ads outperformed average media category benchmarks by four times, further solidifying Snapchat’s position as a high-performing channel for financial brands.

To ensure sustained success on Snapchat, brands need a well-defined measurement framework. This involves a three-tier approach:

1. Daily Execution: Continuous optimization of campaigns through bid adjustments, audience targeting, and attribution analysis.

2. Monthly Experimentation: Implementing A/B testing and incrementality analysis to refine strategies and improve effectiveness.

3. Quarterly Evaluation: Leveraging advanced methodologies like Marketing Mix Modeling (MMM) and Multi-Touch Attribution (MTA) to assess long-term performance and guide future investments.

By adopting this structured approach, brands can fine-tune their advertising efforts and ensure that their campaigns are consistently driving strong returns.

Snapchat has proven to be a highly effective advertising platform in the GCC, offering superior ROI, strong engagement, and innovative ad formats that resonate with younger audiences. Its ability to capture user attention and drive conversions makes it a critical tool for brands looking to maximize their digital marketing efforts.

By strategically allocating budgets, embracing a full-funnel approach, and continuously optimizing performance, brands can unlock Snapchat’s full potential and achieve long-term growth in an increasingly competitive digital landscape.