Roll the clock back two years and Snapchat was living large, charging brands up to $500,000 a pop to sponsor Lenses. Now advertisers can purchase ad space for as low as $2.95 per thousand impressions.
Desperate or clever?
To put that into context, Facebook charges $5.12 per thousand while Instagram bills $4.20, the difference is that Snapchat has shifted from a direct-sales ad team to an automated program.
The new “programmatic” model allows automatically sold pieces of ad space, with 95% of Snapchat’s ads purchased this way in Q1 2018.
Snapchat’s revenue isn’t expanding as quickly as investors would like, but it is growing. Snapchat hasn’t shared the number of invested advertisers, but it is in the thousands – while Facebook boasts millions.
Cheaper ad space means more SMEs will have direct to consumer purchasing. Could Snapchat evolve into a one-stop shop for smaller brands?
Do you think that Snapchat is onto something? Are you surprised at the price point of ad space? Let us know in our comments down below.