Snapchat has already managed to accumulate tens of millions of users, now it just needs to start making money off of them. However, while the My Story feature is the best for the app to begin monetizing, AdWeek is reporting that Snapchat is asking for a hefty $750,000 for these My Story advertisements. Even with its userbase and unique type of engagement, it’ll be difficult for the company to justify that steep price tag.
AdWeek recently reported that Snapchat is asking brands for $750,000 per day to run its new “my story” ads. Some would argue that Snapchat’s unique ad format, engagement tactics, demographics, and immediacy make for an interesting experimental advertising opportunity. Others say that $750,000 is a lot to spend for an advertising experiment that has limited analytics, no targeting, and an inability to show ROI — especially when stacked up against other digital alternatives like Facebook. If AdWeek’s report is accurate (Snapchat had no comment on the story), it is worth asking the question: is advertising on Snapchat worth the $750,000 price tag? Although Snapchat provides a unique advertising opportunity for brands, the more robust and cost-effective alternatives like Facebook and prime-time television make Snapchat’s high-dollar ticket seem a little too bold.