Snapchat for Business London 2025: AR Ads & Local Growth

Executive Summary

Snapchat in 2025 isn’t just a Gen Z playground anymore—it’s a serious growth engine for London businesses. With AI-powered ads, accessible AR commerce tools, and a thriving creator economy, the platform has evolved into a performance-driven space that’s finally measurable, scalable, and local-friendly.

Whether you're running a boutique in Shoreditch, a fitness studio in Camden, or managing a national brand with local roots, Snapchat now offers the tools to reach a highly engaged London audience—especially Millennials and Gen Z—with less guesswork and more ROI.

Key highlights:

• Snapchat's direct response tools now account for 75% of its ad revenue.
• Over 23 million UK users are active monthly, with a strong concentration in London.
• AR, AI, and Promoted Places are no longer experimental—they're driving sales and foot traffic.
• Smart Campaigns and creator partnerships make it easier than ever to launch effective campaigns, even with a small team.

---

Special Offer: Spend $350 and get $375 in ad credit when you sign up for Snapchat Ads!

This guide breaks down exactly how to tap into Snapchat’s latest features to grow your London business—strategically, creatively, and profitably.

1. What’s New with Snapchat in 2025 (And Why London Brands Should Care)

TL;DR: Snapchat is becoming a top-tier ad platform with new tools that make it easier to reach London’s most valuable demographics. Expect AI-driven automation, more measurable results, and deeper integrations with creators.

1.1 Snapchat’s New Playbook for Business

In 2025, Snapchat’s shift is clear: it’s not just about brand awareness anymore. It’s about performance.

Snapchat’s own brand campaign, "Say it in a Snap," sums it up: talk to people the way they already communicate—fast, visual, and raw. And it’s working.

Just look at the numbers:

• 14% revenue increase YoY (Q1 2025)
• 60% growth in active advertisers
• 75% of all ad revenue now comes from direct response

What that means: Snapchat is no longer just a playground for filters—it’s a real ad channel for conversions.

“We're focused on delivering measurable outcomes for advertisers, especially through direct response and e-commerce tools.”
— Evan Spiegel, CEO of Snap Inc. (2024 earnings call)

1.2 The Tools Getting Results

Smarter AI Campaigns

Snapchat now helps automate the boring stuff:

• Smart Bidding: adjusts your bids in real time to hit your cost-per-action (CPA) target
• Smart Budget: automatically sends more money to high-performing ad sets
• Value Optimization (VO): bids more aggressively for users most likely to buy

“Smart optimization tools are about lowering the barrier for small businesses while increasing efficiency for everyone.”
— Peter Naylor, VP of Americas, Snap Inc.

AR That Sells

Snapchat’s AR tools used to be for big-budget campaigns. Not anymore.

• AR Extensions: Drop AR lenses into your regular ad formats
• Generative AI for AR: Turn 2D images into interactive AR content in minutes
• Sponsored AI Lenses: Appear right in the Lens Carousel, where users already play

You can now build high-performing AR without coding or a creative agency—just like you can craft scroll-stopping visuals in How to Use Canva in 2025.

Creator Tools That Feel Real

Snapchat’s creator ecosystem isn’t about picture-perfect influencers. It’s about unfiltered, local creators who feel relatable. New tools help you:

• Connect through the Creator Marketplace
• Run Sponsored Snaps directly from a creator’s account
• Offer real monetization pathways (Spotlight, tipping, subscriptions) to incentivize better content

1.3 Why SMBs Should Pay Attention

If you run a small business in London, Snapchat’s 2025 update is for you:

• 85% YoY growth in SMB advertisers
• Lower cost of entry with Smart Campaigns
• Better measurement tools (Snap Pixel + Conversions API)

1.4 The London Advantage

Here’s why London brands are uniquely positioned:

• A young, mobile-first audience that lives on Snapchat
• High digital literacy and smartphone penetration
• A diverse creative scene that thrives on authenticity

2. Understanding the Snapchat User in London (2025)

Key UK Snapchat User Statistics (2025)

Metric	Data / Estimate	Relevance to London Businesses
UK Monthly Active Users	21 million	Major share likely concentrated in urban hubs like London
Gen Z Reach (13–24)	90% penetration	Ideal for youth-focused retail, food, fashion, and entertainment
Gen Z + Millennial Reach	75% penetration	Strong full-funnel potential with mobile-first buyers
Users aged 25+	45% of total MAU	Rising opportunity for businesses targeting young professionals
Avg. Daily Usage	30+ minutes per user	High engagement, frequent touchpoints for ads and storytelling
AR Engagement	300M+ daily users; 6.4x higher purchase intent	Leverage for try-ons, product demos, and interactive promotions
Snap Map Users	400M+ monthly	Prime real estate for local discovery and Promoted Places ads
Sound-On Ad Viewing	64% of users	Important creative consideration—audio matters on Snapchat

3. Strategic Deployment: How London Businesses Can Use Snapchat in 2025

3.1 Pick the Right Ad Formats for Your Goal

Ad Format	Best Use Case
Promoted Places on Snap Map	Driving local foot traffic
Sponsored Snaps in Chat	Personalized and direct user engagement
Collection Ads	E-commerce showcase for product discovery
Web/App Auction Ads	Targeting specific actions (installs, sales)
First Snap Takeovers	Brand awareness or major event promotions

Snapchat isn’t one-size-fits-all. The format you choose should match your outcome.

3.2 Use AR to Drive More Than Just Views

Think of AR not as a gimmick, but as a funnel entry point:

• Virtual try-ons (clothing, beauty)
• Product visualizations (furniture, accessories)
• Gamified experiences (quizzes, challenges)

Explore AI-driven audio—consider how AI voiceovers help creators monetize TikTok and Reels.

3.3 Partner with Creators Who Actually Fit

Work with London-based Snapchat creators who:

• Align with your values
• Understand their audience
• Can translate your offer into authentic content

3.4 Set Up for Measurement and Optimization

Checklist:

• Install the Snap Pixel and connect the Conversions API (CAPI)
• Track page views, purchases, and in-app events
• Use Ads Manager to monitor impressions, cost-per-action, and ROAS

Snapchat’s commerce features are evolving—much like TikTok Shop’s affiliate hub.

4. Measuring ROI and Optimizing Performance in 2025

4.1 The KPIs That Matter Most

Funnel Stage	Key Performance Metrics
Awareness	Impressions, Reach, Frequency, Brand Lift
Engagement	Swipe-Up Rate (SUR), Story Completion, Tap-through Rate, AR Interactions
Conversion	Pixel Purchases or Sign-Ups, App Installs, ROAS, Cost per Action (CPA)

“We were seeing 5.4x ROAS across key campaigns on Snapchat. It’s become a central part of our media mix.”
— Love Leggings Team (Snap Inc. UK case study)

5. Long-Term Success: Building a Sustainable Presence on Snapchat

5.1 Make Snapchat a Daily Habit

Snapchat rewards consistency. Don’t just show up for Black Friday. Build:

• A Public Profile where users can always find your latest Stories
• Weekly Stories or updates that keep your brand top of mind
• Periodic AR campaigns to stay fresh and interactive

5.2 Lean Into Authenticity

What works on Instagram may flop on Snapchat. Instead:

• Show behind-the-scenes content
• Use creators for raw, front-camera footage
• Embrace unfiltered, fast-moving storytelling

5.3 Blend Online and Offline

With Snap Map and Promoted Places:

• Highlight events, launches, and new locations in real time
• Run campaigns that drive users into stores or local activations
• Track visits and optimize footfall strategies

5.4 Align Creators to Long-Term Strategy

• Appoint brand ambassadors
• Co-develop Lenses, Story series
• Let creators help shape campaign angles

5.5 Stay Agile and Evolve With the Platform

• Monitor platform updates
• Test and adapt monthly
• Let user behavior and campaign data shape your direction

6. Final Takeaways for London Marketers

• Play native: quick, vertical, visual, sound-on
• Be present: with Public Profiles and consistent content
• Go local: with Snap Map and borough-specific targeting
• Think full-funnel: from swipe-up to store visit

---

Frequently Asked Questions (FAQ)

Q1: Is Snapchat only for teenagers? My London business targets young professionals.
Not at all. While Snapchat dominates with Gen Z, it's growing fast among Millennials. In the UK, 45% of Snapchat’s 21 million monthly active users are 25 or older—making it ideal for brands targeting young professionals in London.

Q2: How expensive is advertising on Snapchat for a small business in London?
Snapchat offers flexible budgets starting as low as £5/day. Most London SMBs begin with £20–£50/day in the exploration phase. Features like Smart Bidding and Smart Budget help maximize your ROI without manual work.

Q3: How do I know if my Snapchat ads are actually working?
Install the Snap Pixel and Conversions API (CAPI) to track conversions like purchases, sign-ups, and app installs. You can monitor ROAS, CPA, and funnel performance directly in Ads Manager.

Q4: I run a physical shop or restaurant in London—can Snapchat drive foot traffic?
Yes. Features like Promoted Places on Snap Map and hyper-local targeting make it easy to reach users nearby. You can show up directly on the map when someone’s looking for places around them.

Q5: How is Snapchat different from Instagram or TikTok for advertising?
Snapchat is “sound-on” by default (64% of users engage with audio), its AR tools are more advanced and accessible, and Snap Map offers unique local discovery. Plus, content feels more raw and personal—ideal for brands focused on authenticity.

---

Ready to get started? Spend $350 and get $375 in ad credit when you sign up for Snapchat Ads today!