Snapchat Discover Pulling in Astronomic Rates

Snapchat DiscoverSnapchats news curation tool Discover has quickly become one of the most talked about advertising properties, and in turn Snapchat and its publishing partners have raised the prices, only to find marketers are happy to pay them.

The platform launched in January with high-profile partners including CNN, ESPN and Vice, and enables publishers to curate five of the days most popular stories in a mobile-friendly format, and sell accompanying video ads interspersed throughout, retaining much of the revenue.

According to Recode, Discover ads are selling at around $100 (£67) per thousand views, around twice the rate that premium video publishers can demand, and many times more than standard web publishers can ask for.

With ads seen anywhere between 500,000 to 1m times a day, publishers are able to command between $50,000 to $100,000 a day for video campaigns, which matches with reports from earlier this year of Snapchats high prices.

If the publishers themselves are able to sell the ad content, they retain 70 per cent of the revenue, while if Snapchat sells the ads, it is split evenly, earning both the publisher and Snapchat a considerable sum.

Part of the reason Snapchat can demand such high prices is that it is seen as a key channel for reaching the teen demographic that many marketers are eager to reach, and are increasingly struggling to connect with through traditional marketing and even digital platforms like Facebook.