Snapchat Require $750,000 From Brands For Ads

Snapchat's Ad Space More Costly Than YouTube's

Snapchat have revealed the price they demand from brands in order for Snapchat to promote their products. You've already seen it in the title; it’s a huge $750,000 (Nearly £500,000).

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That’s a monstrous figure. But it gets even pricier, the $750,000 payment doesn't cover brands for a set of ads or for a deal. It’s in fact the daily rate that Snapchat requests from brands.

To me that does sound rather steep. It’s even more than YouTube’s daily rate. YouTube videos are watched 4 billion times a day while Snapchatters send each other only 400 million snaps a day. So why are Snapchat so bold in their pricing for ads?

It’s because Snapchat is used mostly by teenagers and the young teen’s blossoming into sweaty grumpy old folks are the hardest audience to reach.

With the recent news of a prominent Snapchatter being able to make a living thanks to his snaps as well as many monetised Instragram accounts it would appear that we are venturing into an age were televised advertising is going to be playing second fiddle to the social advertising.

Snapchat also has quite a unique method for advertising as well. Adverts on Facebook and Twitter are consumed rather passively. You’ll see the ads popping up on tweets or on your sidebar and they’ll often be a bit tailored to your preferences, even if sometimes they’re a bit off key. But on Snapchat, to view an advert you have to open it and hold your finger on the screen to keep the ad playing. This way, your audience are forced to engage with your brand and product.

Unfortunately for Snapchat, its advertising capabilities are a touch limited at the moment. For example, if your product is advertised on Facebook, you can see actual figures concerning how many people your adverts have reached, which ones boast more popularity and when and most importantly, how many of those numbers are impacted by your adverts. Snapchat however is its encrypted form gives brands no access to these figures and you wouldn't even be able to find out which gender or age group was most influenced by your snap ads.

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Here’s what a report by Adweek said about this issue:

‘There’s no targeting in Snapchat, so while you might be reaching millennials, you don’t know which millennials are actually seeing the ad. Are they male or female? Are they 18 or are they in their 30s? Do they live in the city or the suburbs? We have no idea. At least with ESPN you have slightly more targeting (you know the viewers like football). The lack of detailed analytics might be the real Achilles heel, and limited targeting doesn't make the price tag any easier to justify.’

Snapchat is an immensely unique platform to advertise from. But in its early stages with no real advertising utilities the huge price tag is definitely asking a bit too much.

Let’s see if Snapchat can amend the huge sum or if they’ll proudly stick to their price for vanishing adverts. 

Tom Welby

Tom has just graduated from University of East London in Creative and Professional Writing. He loves writing and he currently manages, edits and writes for this blog. His other loves include Arnold Schwarzenegger films and his dog. Follow him @TomAtSMF

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