Snapchat Discover, the publisher portal for media companies launched in January 2015, is averaging 2.5 ads per day since July, according to data from Ad Age. At the same time, the platform generated 110 stories across its 12 channels daily over the month, meaning for every 44 stories there’s one advert.
Snapchat Discover advertising vs stories per day
Claiming to have an audience of 60m users checking into Discover each month, it would seem the company isn’t taking advantage of the opportunity to monetise. According to Business Insider, the move may be part of a disciplined strategy on Snapchat’s part instead. The company is rolling out ads slowly, beginning with the bigger brands before it opens up to the rest of the market. Lara O’Reilly, Advertising Editor, Business Insider, writes:
“Snapchat tells Business Insider that Discover is just six months old and that its primary objective with the section was creating engaging content. The Snapchat spokesperson added that Snapchat only started actively selling ads on Discover at the end of July. And generally on the app, Snapchat employs frequency capping so users aren’t bombarded with the same ads over and over again.”
Demand from advertisers appears to be high. Todd Haskell, Senior VP-chief revenue officer, Hearst Magazines Digital Media, confirms that Snapchat Discover advertising has been successful for the company:
“Cosmopolitan and our partners reach an immense audience through Snapchat Discover, and it is a new and meaningful revenue stream for us. We’ve run 20 marketing programs in the past ten weeks, from a wide range of brands in the fashion and beauty, media (film and television), food and beverage categories, many of whom have re-upped for the fall campaigns after seeing outstanding performance and engagement metrics.”
Among the 18 brands that have already signed up for Discover advertising, including Ford, HP, Gatorade, T-Mobile, Dick’s Sporting Goods, VH1‘s “Dating Naked,” Marvel Studios’ “Ant-Man” and Paramount’s “Mission Impossible: Rogue Nation”, many have stated intent to run further campaigns and praised the feedback they had received from users so far.
According to sources close to the company, Snapchat is on course to generate $50m in revenue this year and could bring in $200m during the next year. That’s welcome news, considering the company lost $128m in 2014 and generated only $3.1m.