Snapchat recently started running ads, with an ad for the Universal movie "Ouija" last October. McDonald's launched an advertising campaign this month as part of their big campaign “Choose lovin”, but the reality is that not many advertisers show enough success to justify $750,000 per day.
How does Snapchat compare to YouTube asking high prices from big campaigns? According to YouTube, they bring in $500,000 a day, according to Adweek.
Why does Snapchat feel it can take high praise for its ad campaign? There was a recent study that showed that users like Snapchat adsHowever, the study was also self-funded.
Snapchat believes that It is aimed at a very unique audience, mainly teenagers, and believes that he can command such a high rate every day. But another issue that brands have is that many teenagers do not have the same amount of money that a larger audience would have, despite the fact that they are the most difficult audience to reach with ads.
However, movies like Ouija and Dumb and Dumber, as well as fast food restaurants like McDonalds, target teenagers who have limited budgets.
McDonald's filter on Snapchat
Today Snapchat has 100 million monthly users on its application.
Snapchat has repeatedly limited campaign reporting features, meaning brands are unable to determine how well their ads are doing. They do not separate by gender or age in their advertising analyses, and it is unknown if Snapchat plans to offer more detailed information to advertisers.
This also means that it would be impossible for smaller advertisers to enter any type of advertising on Snapchat with a huge budget requirement. And according to the brands that have been launched, Snapchat is very firm on that $750,000 USD.
Some brands have reported signing on, so we're going to see more ads on Snapchat. However, with many brands refusing to pay that much per day for ads that disappear in 15 seconds, they may have the biggest problem of a lack of advertisers willing to sign on with Snapchat.
Source: The SEM Post
