Snap Inc., in partnership with Omnicom Media Group (OMG) and Annalect have released a new study revealing that advertisers in the GCC achieve a high return on investment (ROI) when using Snapchat – outperforming some media channels in the GCC. The in-depth Market Mix Modeling (MMM) analysis was conducted with five brands across industries in Saudi Arabia and Kuwait, and aimed to set new benchmarks for advertising efficiency. The results further cement Snapchat’s position as a critical tool for brands looking to drive business growth in an increasingly digital-first economy.
With advertisers facing growing pressure to optimize their media spend and drive business impact, particularly as digital transformation agendas reshape the regional advertising landscape, finding ways to make real impact is more important than ever. The study compared ROIs across various media categories including offline, digital non-social media, social media, and Snapchat, using the average ROI of the four categories as a benchmark. Key findings show that Snapchat outperforms all categories in efficiency and effectiveness, exceeding the average ROI benchmark by +14%. Despite accounting for just 8% of total ad spend, Snapchat contributes 10% of all media-driven sales, demonstrating its ability to deliver higher returns with efficient investment.
The study analyzed advertising performance across key industries, including telecommunications, financial services, and over-the-top (OTT) streaming. When it comes to the OTT sector, findings reveal that Snapchat drove up to 1.64x higher efficiency for app installs and subscriptions For telecommunications brands, when leveraging full-funnel activation, a 2.5x higher efficiency was seen compared to the lowest-performing channels. Financial services advertisers also ranked Snapchat as a top-tier performer in loan application campaigns, highlighting its effectiveness in driving conversions.
​The study further emphasizes the importance of a full-funnel strategy, where brands allocate 40-70% of their spend to upper-funnel awareness campaigns while maintaining consistent investment in lower-funnel activities. This approach has generated 1.5x higher ROI compared to single-objective campaigns. By leveraging Snapchat’s diverse ad formats – including Snap Ads, Story Ads, and AR Lenses -brands can enhance visibility, engagement, and long-term loyalty in an increasingly competitive digital environment.
As brands continue to refine their strategies, prioritizing high-performing platforms will be key to staying ahead in a competitive landscape. By leveraging insights from this study, advertisers have the opportunity to optimize their marketing spend and unlock new levels of efficiency and impact in their campaigns.
