Snapchat Demands $750,000 for Self-Destructing Ads

snapchat comboPhoto-messaging app Snapchat is asking brands for $750,000 (£493,000) a day to advertising using its auto-deleting ad units, with many balking at paying out so much for time-limited content.

Snapchat has only run a small number of campaigns on its app so far, but has seen very positive responses from its teen-heavy user base. Brands including McDonalds, NBC Universal, Macys and Electronic Arts have all been early advertisers using the app, placing ads either in users Recent Updates feed, or within the Our Stories event-driven feed.

According to Adweek, the app is now asking brands for $750,000-a-day minimum commitments, arguing that due to its access to the highly-sought teen market, it can demand premium costs.

The app has been focusing on top brands to buy placements, disclosing audience numbers (with stories apparently drawing tens of millions of viewers a day) in order to land big name clients. According to one agency executive, the company is looking for “fewer, bigger, better” when it comes to ad partners.

However, the lack of reporting capabilities on Snapchat, which cannot provide clients with demographic feedback, and the ephemeral nature of the ads, which vanish once they have been viewed by a user, is making many marketers think twice before forking over such a large sum.