Snapchat has over 300 million monthly active users who send 2.5 billion photos and videos each day. Are you including this platform in your 2017 ad strategy? This deck will give you a foundational understanding of advertising on one of the industry's most talked-about new advertising platforms.

1. WEBINAR - FEBRUARY 22, 2017
THE ULTIMATE GUIDE
TO SNAPCHAT ADVERTISING

2. KATANA WEBINAR SPEAKERS
2
SABRINA BLAUSTEINANDREAS ROELL
KATANA | EXECUTIVE CHAIRMAN - PRESENTER KATANA | CONTENT MARKETING SPECIALIST - PRESENTER

3. Katana provides next genera<on digital media solu<ons via
innova<ons in data modeling and adver<sing technologies.
We combine advanced audience data models with
highly sophisRcated technology infrastructure to
run smarter paid media campaigns.
Unlock media potenBal with smart campaigns
Our catalog of campaign packages provide marketers
and agencies the ability to reach audiences in
unprecedented ways.
Smarter digital adverBsing, smarter results
3COPYRIGHT © 2017 KATANA. ALL RIGHTS RESERVED. SNAPCHAT WEBINAR 3
Why Katana?

4. Quick facts
• Founded in 2012 (privately funded)
• 18 Proprietary Ad Technologies
• 68 Data Partnerships
DATA POINTS
PROCESSED MONTHLY
1.34
BILLION
UNIQUE COOKIES
PROCESSED MONTHLY
60
MILLION
AND OVER 2,000 CAMPAIGNS LAUNCHED IN Q4 2016
4
RecognitionWhere We Are
HQ: San Diego, California
Kiev, UkraineWashington, DC
COPYRIGHT © 2017 KATANA. ALL RIGHTS RESERVED. SNAPCHAT WEBINAR 4
Who is Katana?

5. CAMPAIGN INTELLIGENCE PLATFORM
CLIENT DATA
- CRM
- POS
- WEB
- ADVERTISING
- SOCIAL
EXCLUSIVE KATANA DATA
Largest real-Ome audience data for:
- AcOve Sports Events
- Higher EducaOon
- AutomoOve ownership
- Voter registraOon
- Concert goers
- Home ownership
- Clothing
- CosmeOcs & Jewelry
- TaYoos
- Many others
DATA PARTNERSHIPS
Cu]ng edge campaign soluRons not found anywhere else.
Audience DMP Performance Connectors MulB-DSP Setup
So what’s the outcome?
and 54 more
5COPYRIGHT © 2017 KATANA. ALL RIGHTS RESERVED. SNAPCHAT WEBINAR 5
Katana’s Technology Framework

6. Campaigns
Katana has built an ever growing list of campaign execu<ons that fit easily into a marketer’s or agency’s media plans. We customize
each package to meet your needs or objec<ves.
Services
Looking to have us provide you with custom end-to-end media plans
and solu8ons?
Katana can be your digital media partner of choice. Our strategic
media team will help in strategy, audience data iden<fica<on, tracking
setup, crea<ve execu<ons and buying op<miza<on for all digital
channels on an ongoing basis.
OUR EXECUTIONS
• Auto-Trigger
• High Intent Audience
• CRM Cycler
• Cross-device
• Search Keyword
• Image NaOve
• SemanOc Context
• ProgrammaOc TV
• PinPoint
• Household
• Company
• Video NaOve
• Geo PaYern
• Audience Stream
• Offline Visits
• Database Match
• True Video
• Facebook Performance
• TV Extension
Our SoluOons
6COPYRIGHT © 2017 KATANA. ALL RIGHTS RESERVED. SNAPCHAT WEBINAR 6

7. WHAT IS SNAPCHAT?
Snapchat is a messaging and photo/video sharing mobile application that
launched in 2011. In just six years, the app has evolved from a popular social
media network to a 158 million-strong (daily active users) app that has develop its
own advertising API in preparation for its imminent IPO.
On average, people spend 25-30 minutes per day and open the app 18 times
over the course of the day.

8. SNAPCHAT CREATED
April 2011 - December 2012
USERBASE ACQUISITION
December 2012 - November 2014
20 MILLION IMAGES
SHARED A DAY
October 2012
VIDEO SHARING
LAUNCHED
December 2012
SNAP INC. FILES FOR IPO
November 2016
PARTNERSHIP
WITH ORACLE DATA CLOUD
December 19, 2016
EvoluOon of Snapchat
From Launch Leading to IPO
LAUNCHES ‘LIVE’
August 2014
ANNOUNCES ADS
FROM BRANDS
October 2014
LAUNCHES
‘DISCOVER’
January 2015
LAUNCHES SNAPCHAT
PARTNERS API
June 2016
8COPYRIGHT © 2017 KATANA. ALL RIGHTS RESERVED. SNAPCHAT WEBINAR 8

10. US Snapchat Ad Revenues, by source, 2015-2018
Millions and % of Total
2015 2016 2017E 2018E
Snap Ads - Discover
% of total
Source: www.emarketer.com, Sept 2016
NOTE: paid adverRsing only; doesn’t include budget allocated towards
developing or maintaining a Snapchat presence
$58.1
100.0%
$58.1
$149.8
43.0%
$96.3
27.7%
$73.0
21.0%
$29.2
8.4%
$348.4
$243.2
30.2%
$304.0
37.8%
$164.3
20.4%
$93.1
11.6%
$804.5
$401.0
30.4%
$481.2
36.4%
$273.8
20.7%
$164.3
12.4%
$1,320.1
Snap Ads - Live Stories
% of total
Sponsored Lenses
% of total
Sponsored Geofilters
% of total
TOTAL
-
-
-
-
-
-
10
Snapchat Revenue and its IPO
COPYRIGHT © 2017 KATANA. ALL RIGHTS RESERVED. SNAPCHAT WEBINAR 10
Snapchat filed for an IPO (iniBal public offering) in November 2016.
Since then, Snap Inc. has taken the following measures in
preparaBon for the highest valuaBon:
Developed an API for automated buying and selling of ad inventory
Improved API targeBng capabiliBes, such as developing a
partnership with Oracle Data Cloud to enable targe<ng similar to
Facebook or Google
Secured upfront spending commitments from ad agencies of at
least $200 million on Snapchat ads

11. As Snap Inc. (Snapchat’s parent company) prepares
for its iniBal public offering, Evan Spiegal, the
company’s 26-year-old founder, has oriented the
messaging app to level in the same class as Apple
and Facebook by developing its own API.
An API is an applica<on programming interface,
which allows third party data partners to integrate
with Snapchat’s plaborm and deliver ads on behalf
of brands and agencies.
This is Snapchat’s entrance into programma<c
adver<sing, or the automa<on of buying and selling
ad inventory. Snapchat media buying takes
performance of crea<ve, targe<ng and bidding in
determining which ads to deliver.
The benefit of an API? Beger targeBng.
What is Snapchat’s API?
11COPYRIGHT © 2017 KATANA. ALL RIGHTS RESERVED. SNAPCHAT WEBINAR 11

12. The beta of Snapchat’s API was unveiled in June 2016, and
was formally launched in October 2016.
39 Ads API Partners (VaynerMedia is a partner in two
different categories)
The social giant enlisted a slew of adver<sing and crea<ve
partners in order to automate sales and increase
transparency around pricing and ad features. The four
categories of API partners are:
1. Audience Match API Partner
2. Ads API Partner
3. Crea<ve API Partner
4. Crea<ve Partner (newest bucket added)
What is Snapchat’s API?
12COPYRIGHT © 2017 KATANA. ALL RIGHTS RESERVED. SNAPCHAT WEBINAR 12

13. Snapchat API TargeOng
13COPYRIGHT © 2017 KATANA. ALL RIGHTS RESERVED. SNAPCHAT WEBINAR 13
Snapchat has announced the following targeBng opBons accessible through its API:
Email Matching: Brands can use their own customer database lists to find people when
they visit Snapchat
Interest-Based Targe<ng (Snapchat Lifestyle Categories and Lookalikes): Construct
‘lookalike’ models to find similar consumers for ad campaigns
Custom solu<ons such as ver<cal-specific work flows, weather targe<ng, daypar<ng and
syncing with TV
Targe<ng by age, gender, loca<on, device/opera<ng system and carrier
Snap Audience Match: Proprietary technology that brands can use in order to target
users by anonymously integra<ng first party data and mobile device IDs to be overlaid
with Snapchat’s user data
Sequen<al Messaging: Users are retargeted and served with new ads aker they’ve
engaged with an earlier one
*Snapchat has hinted that this will be available.*

14. AdverBsers can assess the performance of their campaigns
through a web-based dashboard. The dashboard reveals
important key performance indicators (KPIs) such as:
Number of views
Campaign Spend
How long videos are watched
Other Real-<me repor<ng (such as swipes or impressions)
Why is this important?
Technology partners that adver<se on other social plaborms
(Facebook, Instagram, Pinterest, Twiner and LinkedIn) can
compare how Snapchat performs in the mix, and adjust media
plans accordingly.
Trade desks and media agencies want more hands-on
experience and op<mize campaigns on their own, expressing
concern about analy<cs and KPI repor<ng. With Snapchat’s API,
adver<sers have more access and control over analysis and
repor<ng.
14COPYRIGHT © 2017 KATANA. ALL RIGHTS RESERVED. SNAPCHAT WEBINAR 14
Snapchat API Dashboard and Metrics
Source: Courtesy Brand Networks
An overview of the Snapchat API dashboard.

15. 15COPYRIGHT © 2017 KATANA. ALL RIGHTS RESERVED. SNAPCHAT WEBINAR 15
Benefits of Snapchat’s API
The Snapchat adverBsing plaiorm has adopted programmaBc tendencies,
warranBng more scalable opportuniBes for buyers to place ads in between
their target audience’s stories.
A/B test mul<ple crea<ves simultaneously and op<mize campaigns in real
<me, a similar concept that is commonplace on digital plaborms like
Facebook and YouTube.
Leverage ‘Snap Audience Match’ — a proprietary technology that brands can
use in order to target users by anonymously integra<ng first party data and
mobile device IDs to be overlaid with Snapchat’s user data.
Brands can tap into Oracle Data Cloud’s aggregated data on 110 million
households, $2 trillion in consumer spending and 1,500 brands, Snapchat
will be able to determine if offline ac<vity or purchases are influenced by the
ads on its plaborm, which will translate into more adver<sing dollars.
Snapchat announced a deal with Oracle Data Cloud in January 2017

16. Since the millennial demographic is varied, an API improves targe<ng. Instead of targe<ng millennials as a
demographic, you can target individuals who are actually engaging. Over <me, we can interpret data points
and strategize how brands might retarget individuals who engage with ads.
Snapchat is currently the only plaborm leveraging Oracle’s offline data informa<on, although other tech
giants, such as Pinterest and YouTube, have established related partnerships. Facebook u<lizes both online
and offline data to improve ad targe<ng, even sanc<oning users to personalize which ads they are served.
Snapchat API TargeOng

17. SNAPCHAT PRICING MODELS AND BUYING OPTIONS
There are currently three different ad units, but there are more than three
pricing modelings and buying options, adding additional layers of
complexity to the media buying process.

18. Ad Unit #1: Sponsored Lenses
18COPYRIGHT © 2017 KATANA. ALL RIGHTS RESERVED. SNAPCHAT WEBINAR 18
Lenses are interac<ve filters that all Snapchat users can use to enhance their photo or video. Adver<sers work
closely with Snapchat to ensure the crea<ve works interac<vely across opera<ng systems.
Snapchat lenses were first introduced in the laner part of 2015, and the number of Snaps featuring Lenses
have augmented from 10 million to 30 million. Sponsored Lenses use triggered anima<on to ac<vate the user
experiences, and users will interact with this ad type for about 20 seconds. They are ac<ve for 24 hours.
Sponsored Lenses can be bought as a Na<onal Campaign and have versa<le in-campaign features, including:
Flexibility to change lens colors and textures or swap 2D sta<c images during the campaign
Ability to u<lize a second trigger in succession of the original trigger (ex: raising eyebrows or tapping on
the screen)
Swap an addi<onal lens during the course of the campaign
Leverage two different lens types to accommodate two users in the frame
Swap in a second lens during the campaign, for example, if you wanted to introduced another character
Create two different lenses - one for the front and one for the rear-facing camera
*These features may be subject to addi<onal cost.*
Source: Snapchat
Source: Snapchat

19. Ad Unit #1: Sponsored Lenses Cost
19COPYRIGHT © 2017 KATANA. ALL RIGHTS RESERVED. SNAPCHAT WEBINAR 19
Sponsored lenses are best used for na<onally-known brands to improve their image
or launch new products. Since Sponsored Lenses capture a na<onal audience, the
ad’s tone must be in tune with the actual brand’s persona.
Notable brands that have uOlized sponsored lenses, include Gatorade, Taco Bell,
and The Peanuts Movie.
The actual cost of Snapchat ad units are ambiguous, although
Sponsored Lenses reportedly cost:
$450,000 each per day Sunday through Thursday
$500,000 for Fridays and Saturdays
And more than $700,000 for holidays/special events (like the
Super Bowl)
Lenses are the most challenging ad unit to execute because
adver<sers/agencies have to work in unison with Snapchat’s
developers to create and code the lens — a process that can take
months!
Source: Snapchat featuring Gatorade

20. Ad Unit #2: Sponsored Geofilters
20COPYRIGHT © 2017 KATANA. ALL RIGHTS RESERVED. SNAPCHAT WEBINAR 20
NaBonal Campaign: Reach Snapchaners at scale to
generate awareness for a product or event.
• Works best when aligned with events, holidays and pop
culture trends
• Par<<on the campaign into mul<ple groups by: age,
place, or <me periods (at an addi<onal cost)
Shared Spaces Campaign: Offer Snapchaners in high-traffic social
spaces a fun way to send your brand message to friends.
• Snapchaners in a space of your choice (airports,
colleges, high schools, golf courses, etc.) can view and
send your Sponsored Geofilter
Chain Campaign: Offer Snapchaners at your retail loca<ons a fun way to
send your brand message to friends.
• For geographically diverse campaigns, crea<ve rota<on is
included and encouraged
• Geoloca<on data must be supplied ten days prior to
campaign launch
Event Campaign: Associate your brand with a major event, and offer
Snapchaners a way to send your message.
• Snapchaners at an event you choose can view and send your
Sponsored Geofilters to friends or post to their Story
(excluding events with Live Stories)
• For longer events (like fes<vals), crea<ve rota<on is included
and encouraged
A geofilter is a sponsored photo or video filter that is ac<ve on every Snapchat user’s account, in a defined geographic loca<on and <me. The brand or agency is
responsible for providing crea<ve (web op<mized PNG file) that must follow all of Snapchat’s community and brand guidelines.
Sponsored Geofilters reach 40% to 60% of daily Snapchagers in your specified region, and this ad type was historically LOCAL. You
can buy Sponsored Geofilters as:
Source: Snapchat

21. Ad Unit #2: Sponsored Geofilters Cost
21COPYRIGHT © 2017 KATANA. ALL RIGHTS RESERVED. SNAPCHAT WEBINAR 21
Source: Snapchat
Na<onwide (versus local) Sponsored Geofilters are a new offering from
Snapchat. The pricing modeling for Sponsored Geofilters is rela<vely
ambiguous, but we es<mate the cost to be around a filh of the cost of
Sponsored Lenses.
Meanwhile, Sponsored Local Geofilters are es<mated to cost $5+ (higher
for special events).
A Sponsored Geofilter can be used to drive local awareness. Historically,
Sponsored Geofilters have been used for local brand recogniBon,
company announcements or as a recruitment tool.

22. Ad Unit #3: Snap Ads
22COPYRIGHT © 2017 KATANA. ALL RIGHTS RESERVED. SNAPCHAT WEBINAR 22
Snap Ads offer up to 10 seconds of verBcal full-screen video
adverBsements, with an op<on to ad interac<ve anachments easily
assessable by swiping up. These type of ads have up to 2X higher visual
agenBon in comparison to other social plaiorms, and two thirds of
Snap Ads play with audio on for added impressionable moments.
In January 2017, Snapchat launched their deep-linking ad feature around
the <me that Instagram launched ads within Instagram Stories.
Snap Ads can be bought as:
Snap Ads
Snap Ads + Anachments
Snap Ads App Install
Snap Ads Web View
Snap Ads Long-Form Video
Snap Ads Ar<cle
Source: Snapchat

23. Ad Unit #3: Snap Ads + AYachments and Cost
23COPYRIGHT © 2017 KATANA. ALL RIGHTS RESERVED. SNAPCHAT WEBINAR 23
Snap Ads with Agachments receive
5X the ‘swipe up’ rate versus the
average CTR of other social plaborms.
Snap Ads are esBmated to cost
$10,000 per month.
Snap Ads + Agachments Ad Formats:
Example: ’SWIPE UP FOR MORE’

24. The biggest hurdle Snapchat will have to overcome:
Resolving issues around integra<ng with key tracking partners, like
DoubleClick or Atlas, as well as expanding targe<ng to include the other
major giants, such as LiveRamp.
Future of Snapchat
24COPYRIGHT © 2017 KATANA. ALL RIGHTS RESERVED. SNAPCHAT WEBINAR 24
Snapchat’s CEO, Evan Spiegel, ini<ally swore off
hyper-targe<ng with third party data. The company’s
API and adop<on of third party data targe<ng
conveys significant maturity.
Snapchat is moving from a revenue-share model for
premium publishers to an upfront license-fee model
(where Snapchat retains 100% of ad revenue on it’s
Discover plaborm), embracing a syndica<on model
(how TV media inventory is purchased).
01.
02.
eMarketer projected that Snapchat will gross $1 billion in
adverBsing revenue by the end of 2017, making up nearly 2% of all
social network revenue dollars in the U.S.
Snapchat Ad Revenues Worldwide
2015-2018
Millions and % Change
$1,760.1
$59.2
$366.7
$935.5
Source: eMarketer, Sept 2016
2015 2016E 2017E 2018E

25. In Conclusion
25COPYRIGHT © 2017 KATANA. ALL RIGHTS RESERVED. SNAPCHAT WEBINAR 25
Snapchat’s API opens the barriers to adver<sers who
wouldn’t normally adver<se on the plaborm:
Snapchat ads are about reducing ad fricBon, which is
why they don’t use pre-roll and why its ads ARE
skippable.
Snapchat ads take advantage of sound,
Snapchat ads are acBonable since they drive brand
awareness. Full-screen Snap Ads and Sponsored Lenses
(if you have the budget) have the most poten<al for
influencing conversions.

26. Stay in touch!
Contact:
info@katana.media
225 Broadway Suite 430, San Diego, CA 92101