Snapchat Bets on Location-Based Marketing with “promoted Places” as Ad Growth Slows
Los Angeles,CA – Snapchat is rolling out a new advertising tool,”Promoted Places,” integrated directly into its popular Snap Map feature,as the social media platform confronts a slowdown in advertising revenue growth. The move signals a strategic shift to diversify income streams and prepare for future ventures, including its highly anticipated augmented reality glasses.
The new feature allows brands to highlight their physical locations on Snap Map, offering users a seamless way to discover nearby businesses. McDonald’s France was the first to test the program, and the results have been impressive – reaching over 9 million users within just one month of launch.
Snapchat CEO Evan Spiegel acknowledged the concerning trend of limited ad revenue growth in a recent letter, prompting a company-wide reassessment of its commercial strategy. The plan focuses on three key pillars: diversifying revenue beyond traditional advertising,optimizing overall platform profitability,and laying the groundwork for the launch of its AR glasses.
“Promoted Places” aims to capitalize on a growing consumer behavior: consulting social media recommendations before visiting a physical location. according to Grégoire Gimaret, Head of Product Marketing EMEA at Snap, the format is designed to “insert in a fluid manner into the experience of discovery of Snapchat users,” driving foot traffic and fostering deeper engagement during the shopping experience.
The launch of “promoted places” comes at a critical time, as Snapchat faces increasing competition from platforms like TikTok, which also offers innovative geolocation features. Snapchat’s bet on location-based marketing could prove pivotal as it navigates a challenging advertising landscape and prepares for a possibly transformative 2026 with the planned release of its AR technology.
Key Takeaways:
* Ad Growth Concerns: Snapchat is experiencing a slowdown in advertising revenue growth.
* New Revenue Stream: “Promoted Places” offers a new way for brands to advertise and drive foot traffic.
* Prosperous Initial Test: McDonald’s France reached 9 million users in one month using the feature.
* Strategic shift: The move is part of a broader plan to diversify revenue, improve profitability, and prepare for AR glasses launch.
* Competitive Landscape: Snapchat is competing with TikTok for dominance in location-based marketing.
