Snapchat Launches Sponsored Selfies

Snapchat is preparing to launch a new advertising format that will allow brands to slip in to teenagers’ selfies, as it hunts for ways to make money from its young audience.

The messaging app, which is one of the most valuable private technology start-ups, is setting out to sell “sponsored lenses” to marketers, which are due to debut on the platform from Halloween, according to people familiar with the matter.

Snapchat will design the stickers on behalf of brands, with Hollywood studios likely to be among the first advertisers.

The animated lenses will appear alongside the regular options, launched two weeks ago, such as putting hearts where your eyes are or making it look like you are vomiting a rainbow.

Sponsored lenses will charge up to $750,000 for one brand to reach the entire userbase for one “on peak day” such as Halloween, Thanksgiving or Black Friday, or $450,000 for an off peak day, the people familiar with the matter said.

The company has reached a $100m projected annualised revenue run rate, according to one person familiar with the matter, with some brands already making $10m commitments for next year.

Snapchat declined to comment on pricing or revenue projections but a spokeswoman said: “Sponsored lenses allow Snapchatters to express themselves and connect with a brand in a really creative and dynamic way.”

The start-up, which last raised funds at a $16bn valuation, has been searching for new ways to monetise its audience of 100m daily active users ever since it abandoned its first major ad format, the brand story, earlier this year.

Imagine the Snapchat selfie Lens above branded with Iron Man 4. How much would Marvel pay to let Snapchatters Iron Man themselves and send these pics and videos to friends the weekend the movie opens? Apparently as much as $750,000 for one peak day like a holiday, according to a report of an upcoming new Snapchat ad format from the Financial Times.

And imagine how much more Marvel would pay if you could click from one of those branded selfies straight to a trailer for a film? There could be scary lenses branded for horror movies. Or a lovey-dovey Valentine’s Day lens from Hershey’s.

Now you’re starting to understand Snapchat’s monetization plan.

With a notoriously young, digitally native userbase, cramming Snapchat full of traditional ads doesn’t seem like it would work. In fact, it didn’t. Snapchat ditched its initial, more traditional ad unit that put commercials like film trailers in people’s lists of Stories to watch.

And since most kids are on a budget, in-app purchases could be a tough sell. Snapchat is currently experimenting with the ability to Replay more than one snap for free a day,selling packs of three extra replays for $1. Maybe if some of its new facial recognition lenses that add animated effects to your face were cool enough, users would pay to jazz up their Snaps with them. The same goes for premium filters. But again, a lot of kids don’t have the cash to pay.

Source: Techmeme

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