At first, brands were hesitant to invest in Snapchat’s elaborate advertising plan, citing its high fees and worries over the lack of permanent placement. But it’s become something of a hit, with many reasons to invest in the popular app mainly its growing audience.
However, those brands probably don’t realize just how popular Snapchat’s service is, but Variety has a good idea. The site reports that, via numbers provided by IBTimes, the app now sees an average of four billion daily views putting it right alongside the social media site Facebook.
The number, which was confirmed by Snapchat, is compiled from both Live Stories shared through the various users of the app, including media companies, but without counting either private messages or Snapchat Discover, even with its 15 content partners. This shows that the company’s interstitial ad set-up through Live Stories is quite successful.
Considering that Snapchat’s video format is brief and temporary, since they only stay on the app for a limited amount of time the four billion daily views is an impressive number, especially for its ephemeral format, which is far different from what YouTube and Facebook have to offer.
These numbers add up to big business, too. The company has asked for two cents per view on a 10-second ad, and sometimes even higher, going up to ten cents a view, depending on the ad. As a result, this can easily translate into a high number of CPM’s (or cost per thousand views) of $20-$100, creating a huge cash flow as a result.
It’s drawn in a number of high-profile partners as well, including Stephen Colbert, who debuted his new Late Show on CBS this week, along with Major League Baseball, Fusion and other Discover partners like ESPN, CNN, and Comedy Central.
More information on Snapchat’s successful business model can be found here.
