In bid to maximise revenue from its popular
and unique messaging service, Snapchat is
now asking brands to pay minimum
$750,000 per day for its disappearing ads,
according to a report by Adweek.
While many brands are mocking at the
price, Snapchat believes it is completely fair
because it caters to the most difficult
audiences – teens. “Teens are notoriously
difficult for advertisers to reach and
Snapchat’s user base skews much younger
than its competitors. The company is
essentially providing a direct line to
teenagers all over the world,” points out
BusinessInsider .
However, an unnamed executive related to
the matter told Adweek that the platform
lacks sophistication and has limited
reporting capabilities, like there is no age
breakout. He further added that it can’t
even tell brands how many men versus
women saw an ad.
According to the report, several brands are
baffled with the price that is almost
equivalent to traditional television ads. “It’s
clear from its pricing structure alone that
Snapchat is hoping to position itself against
traditional television commercial buys. The
video-heavy messaging app’s rates are
somewhat in line with mainstream TV ad
rates,” adds Business Insider.
Some sources also pointed out that the
pricing Snapchat is quoting is even higher
than what YouTube asks for a day.
However, many believe that Snapchat will
have to negotiate down for the pricing it is
asking.
Despite the hefty fees and lack of reporting
software, many brands have begun
advertising on this ephemeral messaging
platform such as McDonalds and EA, in
order to reach a younger group of
customers.
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