Snapchat wants advertisers to spend a minimum of $750,000 per day

Snapchat wants advertisers to spend a minimum of $750,000 per day

Big bucks

Editor: Buro 24/7

Messaging app Snapchat has kickstarted its monetisation strategy and its going big: Asking advertisers to spend a minimum of $750,000 per day to utilise its growing global audience...

Snapchat may only being at the starting line of its monetisation journey but it isn't shy to ask for the big bucks: Telling potential advertisers that they need to invest a minimum of $750k per day to sign up with the messaging app.

Snapchat arguably has an incredible audience – especially amongst teens, and clearly thinks it is worth the large sums of money, as do apparently some businesses, who have already signed up to advertise with the popular video and picture messaging service.

Of course the teen market is notoriously hard to reach, so the world's biggest brands are likely to see where Snapchat are coming from. For example, a 30-second advertisement slot on American Idol costs $475k, whilst a commercial on NBC's Sunday Night Football can cost around $627k.

The pros of Snapchat ads (for the investor anyway) is that the ad appears just like a message from a friend, and doesn't disappear until it is watched – which means that many people will click it, and even if they may not pay 100% attention to the content, it will be registered. The cons are that there is no way to analyse exactly who is viewing the ads and engaging with them, since Snapchat does not currently insist that its users declare their age or gender. 

Universal Pictures are said to have been pleased with their initial investment through its first Snapchat ad – signing on for another, this time for Dumb and Dumber To.

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