Although Snapchat has fallen behind rival Instagram in attracting users to engage with its Stories feature, there’s some good news for advertisers. Given the growing success of Instagram, ad prices have also increased. Meanwhile, ad prices on Snapchat have dropped potentially presenting an attractive alternative for many brands and retailers.
To give an indication of prices, CPM is now just $1.88 on Snapchat, compared to a whopping $14-$17 on Facebook and even $19 on Instagram, according to David Herrmann, director of advertising at Social Outlier.
Digiday reported that some agencies had monitored ad prices on Instagram growing steeply over the last few months.
“Instagram Stories’ CPM went from being something more comparable to Snap to more Instagram core feed. That’s good news for Snap. Snap now has the more efficient pricing narrative,” added Jon Morgenstern, VP of paid media at VaynerMedia.
Cheaper ad prices mean that advertisers can try out different versions of their campaigns on Snapchat without fearing huge budget losses due to ads that simply don’t work as well.
Additionally, Snapchat has added a host of measurement tools and new advertising features to add transparency and boost campaign creative options. For example, the app added an option for swipeable ticket purchases following initial testing with ticket platform SeatGeek.
The company previously announced that 95% of Snap Ads are now served programmatically, which ensures that the process is more intuitive. Meanwhile, 67% of Snapchat ad revenues are now coming from Snap Ads and 15% from lenses.
The General Data Protection Regulation may have also bolstered Snapchat’s profile among advertisers as it has complicated the process on rival Facebook somewhat, leaving Snap with a seemingly simpler processing profile.
However, offering cheaper ads is unlikely to keep advertisers returning to the platform in the future. Continued innovation and campaign successes are likely to remain key aspects for marketers to choose Snapchat over other platforms if prices increase.