Snapchat’s CEO recently announced that the application will begin the process of monetization. The popular app has been the source of intense interest with Facebook trying its best to acquire the company.

Companies understand how important it is to advertise on social media platforms. In fact, many companies report that interacting with their consumers on social media can drive business more than three times faster than traditional advertising. Snapchat is the latest app to announce advertisement partnerships.

Snapchat has also shown tremendous ability in incorporating new changes without alienating its core audiences. I have faith that Snapchat’s implementation of ads will be well-received by its users. For example, when Snapchat introduced “stories” to its application, there was a fear how its users will react, as up until then the application had been known only for its micro-messaging. Now, however, this feature is by far the most used feature by its users and in fact is the one where Snapchat will now be placing its partners’ ads.

Analysts say Snapchat ads are a huge opportunity for businesses to increase their exposure to the highly coveted 18-30 demographic. Here are three reasons why I think analysts are right.

Snapchat is Growing Fast

This is the first and foremost reason for any advertiser to put their money into having a Snapchat presence. It has been the fastest-growing application in countries all over the world, with most of the growth coming from young adults. This is the most active demographic on the Internet and most likely to share, which analysts say eventually drive organic growth to companies.

Snapchat is Fresh and Innovative

Facebook has been trying its hardest to regain the amount of users they had at one point in the past. In fact, it has gone so far as to blatantly copy Snapchat not once, but twice and failed! Brands have an opportunity to be innovative with their advertisements and even reinvent themselves with Snapchat.

Snapchat has also taken the decision to not super-target their ads as of now. This will help quell privacy concerns that a lot of people have been expressing with Google and Facebook. This decision will help Snapchat stand out from the crowd and thus all the brands that associate themselves with it.

First Mover Advantage

Google and Facebook split almost the entire ad money on the web between them with everyone else scrapping for the rest. Snapchat is poised to be the third major competitor to social media advertising, and there is a clear window of opportunity for companies to make their presence felt without everyone else trying to get in on the action.
Companies are all clamoring over themselves to find unique ways to interact with their users. In an era where users are quick to jump to the next new thing, Snapchat can be their way into the advertising space of a whole new generation.