Snapchat is reportedly asking brands to cough up as much as $750,000 daily to have their ads reach the app’s teenage audience.
To secure a promotion in Snapchat’s Recent Updates feed brands will be as much as $750,000 out of pocket a day, according to Adweek. The in-app ads, which were first introduced in the US in October, are not targeted at specific users and disappear 24 hours after they are viewed.
An anonymous agency executive told Adweek the ads go for a minimum of $750,000 per day as the app is “looking for fewer, bigger, better” adverts.
The company, which was last August valued at $10bn alongside Uber and AirBnB, draws 100 million users on a daily basis, providing a sizeable captive audience to brands looking to get their name out.
Another source claimed that the firm’s lack of data feedback devalued the ads which draws costs “significantly higher” than competing platforms such as a YouTube.
Despite years of booming growth, the photo-sharing app has only recently launched its monetisation strategy. In addition to the ads, Snapchat also rolled out its Snapcash feature last November allowing users to transfer money directly to friends through the app - for a fee.