Snapchat, the popular social app, apparently has some of the lowest prices for advertising placements, according to a report by AdAge. Snapchat partner 4C revealed that the company’s ad cost was $2.95 on average per thousand impressions. That’s considerably lower compared to $4.20 on Instagram and $5.12 on Facebook.
The drop in ad pricing is partially due to Snap Inc recently refocusing its ad strategy toward becoming a self-serve programmatic ad platform. The company is hoping to increase ad sales this way.
Previously, Snapchat was rather exclusive when it came to ads, only focusing on large brands that were able to fork out significant dollars for placements. However, Snap quickly began to struggle publishing disappointing financial results.
In an effort to boost sales, Snapchat has launched an Ad Manager last year, which allows any advertiser to buy ads. It also created the Snapchat Certified Partners programme that puts marketers in touch with third-party providers. Further, Lens Studio was launched in late 2017 to boost Artificial Reality content across the app.
Having swapped to programmatic, Snapchat said it already sold 95% of its ads programmatically in Q1 2018. Meanwhile, prices were 65% lower than in 2017.
However, the lower pricing may hint at the app suffering from fewer advertiser interest. At the same time, it’s unrealistic for an app with 158 million users to try to compete or be compared with social media giant Facebook which has over two billion users.
Lower ad prices may indeed be an opportunity for social media marketers to test the waters on Snapchat.