Well, thanks for taking the time, Evan. Everyone in New York at the top of One World Trade will be seeing this and everyone will be excited to hear what you have to say. So, thanks for taking the time.
Well, thanks so much, Austin, for having me and thanks for the partnership. I mean, it's been really exciting building together and lots of opportunity ahead.
Early days. Early days. So, I know for the audience, everyone out there, they're going to be wondering, you know, what are we talking about today? Really two things. We're talking about Snap as an ad platform and how it's evolving and how it's really early days in monetizing the billion users that they have. Engaged users which I am one of on the platform. As we all know, Snapchat really, you know, pioneered so many things in the video and phone camera native use of the camera in a way that's unique to Snap. And the second thing we're talking about are the glasses and a new computing platform and how that will change shopping that we'll kind of focus on that for this audience here. And you know I'm sure Evan will provide some other interesting anecdotes about the glasses. So diving in I know Snapchat has been around as an ad platform for a while. I'll highlight the things that we're doing, you know, with you which we're excited about. One is measuring views, right? Because Snap, you know, maybe relative to some other platforms, isn't necessarily the kind of platform someone's going to click and buy right away always, right? But sometimes, and it does a good job of that, but it's really incredible on the video side and getting folks engaged and then they view content and go later, maybe buying on their desktop. And so, we're working with Snapchat to measure those views across all platforms so that Snapchat can really get the credit. That's one. Two, we're working on automated incrementality testing to kind of validate that, right? To make sure that all the people in the audience are, you know, if they spend a dollar on Snap, it's incremental and driving their business. And the third thing that's new is what Northbeam calls Apex and Snapchat calls third party attribution optimization where Snapchat can optimize their ad delivery off Northbeam attribution data versus what Snap sees. And the early beta results are incredible. So for everyone out there, you know, please get it set up to test it. We're really bullish on it. I also want to talk about new ways that brands and businesses can scale on Snapchat that you're releasing, let's call, you know, over the next year. So I'm talking too much.
Well, no. Well, thank you. And Apex sounds a heck of a lot better than a third party web optimization. So we'll go with Apex. And it's been really exciting. As you said, you know, in our early beta, folks have seen a 49% increase in ROAS. And so I think those results are really meaningful. And I think one of the things I really love about Northbeam is that it actually recognizes the customer behavior, right? That customers aren't just on one platform. They traverse across a huge number of platforms throughout their day. And Northbeam really helps advertisers understand the impact of engaging across the day. And that's really meaningful for Snapchat because folks don't realize how frequently people are using Snapchat to check their messages, to catch up with friends. That's a real advantage Snap has when it comes to driving real world purchase behavior. And I think Northbeam can really help advertisers understand the impact of that.
Yeah, it's early days, right? Because you know Snapchat is growing, the user base is growing and you and the team have done such a great job of building the audience and launching this new computing platform and now it's time to like really help, you know, not that you haven't been because you guys have, but like really excel and push this platform to monetize for businesses which we're doing together and I'm extremely bullish on the early Apex results. They're incredible and we've been working on it for a year with your team. So early days and I think in Q4 in particular, we're going to see some incredible results in our partnership. This is going to be a hot take I got here for. Okay, so I love the platform. I've been a longtime, you know, user and there's this belief that the Snapchat audience is always younger, right? You know, a lot of people say that about it. Can you talk a little bit to this audience about the Snapchat audience and maybe I think there are a lot of misconceptions so maybe you could help us understand and it's growing and a billion users which is a lot but what does it look like?
Well today Snapchat is more than 80% above the age of 18 and actually 35 plus is the fastest growing demographic for us here in the US. So, I think folks often, you know, believe that Snapchat is a younger audience, but we've really grown with the folks who started using Snapchat 15 years ago when we created the app and, you know, still using it today to stay close to their friends and family.
I think it's a really important thing that the fastest growing audience is 35 plus because I guarantee that's news to a lot of people. I mean, me too, right? Because I mean, you have the data. I think that's super exciting in a lot of ways. Those people have purchasing power and so if you're not engaging with Snap and understanding not only how does it work today but the mobile platform they're developing you will be slow to reach those users slow to capture that incremental growth and our audience knows that there's always arbitrage when you join a fast growing platform early you get a good price.
And I think with Snapchat and our audience especially in that core 13 to 35 year old demographic the interesting thing about those folks is that they're making so many of these critical first time purchases, right? First car and car insurance. I mean, you know, maybe even first shaving cream, right? Or first mortgage. And so, I think it's such an important time for a brand to build a relationship that is so much harder and so much more expensive to build later if you miss that opportunity.
That's a good point. So, Evan, one of the things that you said off camera that was great was the idea that Northbeam helps folks on Snapchat measure new customers, right? Because a lot of businesses are reaching the same people over and over again on certain platforms and they want to reach a new audience and Snapchat is an incredible way to do that. And of course, you know, our goal at Northbeam is to measure and make sure that, you know, and we feed that signal back to you to make sure, oh, we're actually reaching new people so that we're verifying it and we're driving new customers. Maybe Evan, you can explain to the audience like what it means to reach new customers on Snap, how you've seen it be successful with Northbeam and also how that changes the shopping experience organically within Snap for our customers.
Well, it's harder than ever to drive real incremental growth in your business. And so what I always hear from Snapchat and Northbeam customers is that they're looking for new incremental customers and that Northbeam actually makes that something that's easier to measure because I think a lot of folks using existing platforms are recycling that same audience instead of really meaningfully accelerating the growth of their business. And so people come to Snapchat for those incremental customers that then they can measure with Northbeam. And I think that's just so important. And one of the reasons why I think that's so meaningful on Snapchat is because of the way that commerce is changing. So today, people are learning about new products through creators, right? And through real education from folks who, you know, feel like they live right down the road or something like that, right? And so Snapchat has this really strong creator ecosystem, hundreds of thousands of creators who are working with brands to teach people about new products and ultimately then drive incremental new customers.
Yeah. Talking about like ad formats on Snapchat. Can you talk about some of the newer things you guys are doing where our audience, you know, businesses out there can leverage to scale?
Yeah, I think the most important thing for advertisers to understand is that snaps are the atomic unit of communication on Snapchat. And I think, you know, if you think about anything that matters that happens in your life, right, you either take a picture of it, you tell a friend about it, or you show up there in person, right? And those are the three behaviors that are happening across Snapchat. You're communicating with your friends, you're making snaps, or you're using the map to see what your friends are up to and go explore the world. And I think what we've been really working hard to do is take those behaviors, understand them in a privacy safe way and then use that to recommend advertising in a way that feels incredibly personal. And that's a big leap forward because we can leverage generative AI to make much better recommendations. You know, the old model of advertising were these old sort of ranking models almost like a funnel, right? Starting with the advertiser. And what I'm really excited about is this future where we can start with the user instead and understand them and then recommend products and services based on their unique interests rather than starting with advertisers first and trying to match them with users. And I think that's a really inspiring vision for what advertising can become.
I see. Yeah. So much more personalized and dynamic way to engage with businesses in a Snapchat environment. Are there certain ad formats that you think are exciting that are new or coming soon just for the audience here to say, 'Hey,' to their teams, you should really consider these three new ways Snap is going to allow us to reach users.
Sponsored Snaps have provided a lot of incremental reach for advertisers, which is really exciting. And they show up directly in your Snap inbox. So you can almost think about it as a very visual email marketing perhaps, but without all the junk that's usually in your email inbox. So I think that direct connection that is facilitated between brands and advertisers through sponsored snaps has driven really meaningful results and broader reach across the Snapchat community.
You're in your Snap messages and you've got messages from friends and there's one from a brand that you may love. And to Evan's point, the more personalized Snap gets and leveraging artificial intelligence, they'll be able to send the right message to the right consumer with a brand they care about. And you open it. You open the message in your Snap messages and you see a video. I've seen videos at least or whatever the advertiser wants to send directly.
And what we're seeing a lot of businesses do really effectively are leverage creators for those messages. And so I think what Snapchat's always been known for is that real authenticity and connection, you know, between people, but also with brands. And so advertisers that have been able to find the right creators to share that authentic message in a snap. That's really where you can see super high click-through rates, a lot of engagement and a lot of interest in the products.
