Snapchat is seeing some success with its augmented reality (AR) advertising units. The company began testing its programmatic AR Snap Ads back in November 2017. BMW was the first brands to sign up when it launched the BMW X2. The car maker showcased an AR lens for Snapchatters to check out a showroom.
Now, over 100 brands ran the AR ad units, including Foot Locker, Nike and Hershey’s according to Digiday.
Furthermore, Snap’s CSO Imran Khan reported that 95% of Snap ads were programmatic.
It’s likely that the lower cost of the AR ads compared to Snapchat lenses could be driving the rising interest. Snap Ads and AR ads are both available at around $3 to $8 CPM programmatically. Overall, Snap Ad prices dropped 65% earlier this year in an effort to open up the platform to all advertisers instead of just focusing on large brands.
Meanwhile, the company’s lenses attract more premium prices of up to $40,000 per day.
During the holiday season, brands Foot Locker and Jordan Brand ran four Snapchat AR ads and noted average play times of 45 seconds for AR lenses and 4 million impressions.
This is good news for Snap Inc which has been struggling to attract advertisers to satisfy shareholders. In addition, the company continues to focus on growing its audience and broadening its appeal to more advertisers by launching a self-serve platform.
May 18, 2018