New Snapchat Ads API Helps Brands Lower Advertising Costs

Sources indicate that Snapchat will cut its advertising prices for brands, due in large part to its new ad platform that enables more options and experimentation. With the new API launched earlier this month, Snapchat can deliver ads through third party companies. Snapchat is dropping the cost of its ads API from a minimum of $500,000 when the platform first opened to ads, to a minimum of $100,000, say insiders. Advertisers have expressed concern regarding the high cost of working with Snapchat — and interactive ads in general — both of which are now coming down.

In late 2014, ads in the form of “disappearing” videos served to all Snapchat users cost about $750,000. Last year, the company reduced video ad pricing to 2 cents per view ($20 for 1,000 views).


“This year, prices were back up with premium animated lenses that could cost millions depending on how many an advertiser bought in a given day, and interactive ads, where users can swipe up for more content, cost about $55 for 1,000 views,” Digiday reports.

With 10 billion video views per day, the company is now looking to monetize those views by serving ads between the videos shared by friends, while being careful not to alienate its growing number of users.

The expanded ad offerings, similar to Facebook’s API and marketing partner program, are designed to help brands “experiment in ways they haven’t been able to yet,” according to one agency executive. Marketing tech partners include Adaptly, Amobee, BrandNetworks, SocialCode and TubeMogul, while early brand partners include Hollister, P&G, Verizon and Warner Bros.

Snapchat is expanding to third party tech companies that can “plug into the app and deliver ads for their advertising clients,” notes Digiday. “The API automates the process of serving ads, targeting them to specific groups and measuring them, and it gives brands more flexibility on how much they can spend.”

Advertisers are experimenting with new approaches that are better suited for the platform’s specific style of videos. For example, M&M’s recently offered an ad that looked similar to users’ Snaps and, as a result, fit more naturally on the platform.

“Every platform should have deliberate, thought-out creative that goes on it,” suggests Chris Gomersall, CEO of marketing agency Atomized. “The stuff that looks like Snapchat is going to do better.”

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