This article originally appeared on 60 Second Social.
Brands are reeling after it was revealed that Snapchat is asking them to shell out $750,000 a day to advertise on their platform as revealed by Garett Sloane from Adweek reports.
Snapchats believes that the rates are completely fair given the audience they are able to offer – teens. It is no secret by now that if you are a brand on snapchat then your target market for the service is predominantly teens as they make up a large portion of the active user base.
Which actually brings me to another side point, if you are a brand on Snapchat and teens are not your intended target market then you need to rethink your strategy and focus on other services which may be more tailored to the users you do want to reach.
Teens are notoriously difficult for advertisers to reach and with so many teens using Snapchat, the company is essentially providing a direct line to teenagers all over the world. However, despite the hefty price tag, Snapchat has one big problem. It is limited reporting capabilities.
This means that Snapchat won’t be able to tell brands what types of teens viewed their ads, they are unable to tell brands how many men versus women saw an ad and there are no age breakdowns of users who may be viewing your ads…you know, all basic data you would expect from a $750,000 service.
Oh, and your ads also self destruct.
“It’s very hard for marketers to get their hands around advertising that is so ephemeral,” a source told Adweek. Snapchat has approached top brands and “category leaders” about ads, a brave few have signed on however it is unclear if they are getting a teething in discount rate or if they are paying full price.
Just to give some perspective on where Snapchat is ball parking their prices, a 30 second ad slot on American Idol costs $475,000 while a spot on NBC’s Sunday Night Football which averaged viewer numbers of 21.7 million viewers in the 2013 season, goes for $627,300.
Snapchats ads are self destructing, less than 10 seconds and reach a much smaller, though admittedly more targeted audience. Surely such crazy prices are never going to last or be a sustainable ad model for Snapchat to implement.
About The Author
Mark is the founder of 60 Second Social media where he provides social media news and digital marketing analysis, he is also a proud father of his bearded dragon, Lola. You can follow him on Twitter here. You can also follow 60 Second Social on Twitter here.