Snap is set to roll out a tool in the US called Snap to Store, which collects data to show advertisers how well campaigns are doing.
The feature was first mentioned in Snap’s regulatory filing in February (it was still in beta), before the firm launched its IPO and explained it uses Snapchat’s location features to determine the increase in store visits after users view an ad campaign.
For example, US fast food company Wendy’s created a sponsored geofilter in a promotion which, according to Snap, drove more than 42,000 additional people to a Wendy’s location within seven days of viewing.
Brandon Rhoten, Wendy’s head of advertising, digital and social media said: “Foot traffic into our restaurants is the best measurement of short-term sales success for any programme. Snap to Store is a big win for Wendy’s for this reason – we want more ad tech like this.”
The beta offering was also tested by Paramount Pictures and 7-Eleven.
Snap commissioned independent research, which revealed 80 per cent of users had accessed the app in a restaurant, 66 per cent in shopping malls, 50 per cent at a gym and 49 per cent in airports.
The new tool includes a dashboard showing the number of users who saw the ad campaign and how many of them went on to visit the related location. Snap also breaks down the data by gender, age and US state.
Snap plans to introduce new categories based on frequent places visited by users, such as ‘department store shoppers’, and to improve existing location-relevant categories.
The company clarified it does not reveal a user’s precise location for ad targeting, or collect data when people visit stores but don’t use the app, and said it is committed to protecting user privacy.
Users are required to opt-in to share location data when they download Snapchat.
Access to Snap to Store is available for free to advertisers that spend a certain amount, although it’s unclear what that threshold is, The Wall Street Journal said.