Sponsored Snaps score a major first partner in ‘Wicked’

The news: Snapchat users might find themselves receiving a message soon, though it won’t be from a friend. Instead, it will be an advertisement for movie-musical “Wicked,” the first partner for the new Sponsored Snap ad format.

Snap began testing the ad type in October. These ads appear in a user’s inbox (without a push notification) and must be opened to be viewed. Snap has said the ad will disappear if unopened, but it’s unclear how long it will linger in an inbox or whether it will trigger a notification badge on the app icon.

A big swing: Sponsored Snaps marks the first time ads are appearing in user inboxes, a dramatic turn for the platform that creates high-visibility ad space–though it could come at the cost of upsetting users.

• Snap is on a mission to increase and diversify revenues via a subscription business and offering more ad space. Its Q3 revenues grew 15%, beating expectations, but it still has a vast canyon to cross before it can compete on the same level with Meta.
• 63% of US Gen Z social media users relied Snapchat for direct messaging, according to our July 2023 survey, making it a significant gatekeeper for access to a desired advertising cohort. Just over half (52.3%) of monthly US Snapchat users are Gen Z, per our forecast.
• Though the new ad type has the potential to land poorly with some users, Snap has scored a major initial partner for the format. “Wicked” is produced and distributed by Universal Pictures, a subsidiary of NBCUniversal and parent company Comcast. NBCU has thrown significant advertising dollars behind the film and is using its suite of talk shows and assorted media to promote it.

Our take: The “Wicked” promotion will be a major test of how users react to Sponsored Snaps and how Snap plans to target users via its inbox. Its partnership with Universal Pictures could entice other brands to follow suit, but they may also be waiting to see what the response is before jumping aboard.

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