Snapchat wants brands to pay $750,000 for disappearing ads

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.