Snapchat is apparently offering discounts to advertisers and brands in order to attract new advertising buyers. According to a Digiday article, the company has been providing coupons and discounts of up to 10% to agencies and brand clients.
An unnamed media buyer said:
“I can confirm that there are some bonuses and added-value incentives. The value of the discount varies from client to client, but the bottom line is that they’ve been very aggressive in offering incentives to get brands moving on their products.”
Snapchat has an important reason for trying to boost its advertising sales. The company’s latest Q1 financial results were below expectations and dampened Snap Inc.’s earnings debut. Now, the app maker is scrambling to impress shareholders and boost revenue quickly.
In addition, the company recently revealed its self-serve advertising platform, and whilst some agencies are waiting out for a verdict and comparisons to Facebook’s rather robust ad platform, Snap Inc. has also offered discounts specific to the platform to help incentivise use among unconvinced buyers.
These discounts are clearly aimed at boosting usership across the self-serve platform. In addition, Snap Inc. has broadened its reach with the platform by allowing smaller advertisers to tap in.
Ben Kunz, SVP of marketing and content at Mediassociates, told Digiday:
“One challenge new platforms like Snapchat have is that there is no reference point to determine easily if their ad formats are good or bad deal. By positioning pricing with a 10% bonus coupon, Snapchat is trying to convince media buyers they are getting good value.”
It’s not the first time Snap has offered discounts for advertisers. Competitors such as Facebook and Google have also previously run discounts for marketers.