Snapchat is looking to charge brands $750k/day to advertise on their platform. As a result, big brands such as Taco Bell, Disney, and other brands are advertising with “Snapchat Celebrities” on his accounts for $30k/day.Are “Snapchat Celebrities” the key for brands to market to their direct audience?
Let’s take a step back, and review the history.
In September of 2011, Snapchat had launched on the App Store under the name “Picaboo.” It started out as a class project by Evan Spiegel and Reggie Brown, then Stanford Students. The two later brought Bobby Murphy on board to code. This completed the Snapchat trio.
The next year in May 2012, 25 pictures were being sent per second on Snapchat. By the end of November 2012, over 1 billion photos had been exchanged; meaning 20 million per day. As of May 2014, 700 million snaps were being exchanged per day.
Now, what does this mean for marketing and advertising? Snapchat has combined an audience that is 70% female, 71% of total users are under 25 years old, and every single person who watches a snapchat, fills their entire screen with only that content. Not to mention, about 33% of all 18-34 year-olds use Snapchat. It’s a broad statistic, but advertisers like Redbull, Universal Music, etc. only care for that.
Just as King Bach, Jerome Jarre, and Jessi Smiles took over Vine from the beginning, there are a few that have conquered the Snapchat market. Among those are Shaun McBride, Molly Mitchell, and Chris Carmichael.
You might be wondering how valuable these “Snapchat Celebrities” may be worth to brands. But you’ll be surprised. Taco Bell, Disney, GrubHub, and MLS are among the first few to hire these Snapchat experts.
If the decision is between a celebrity for $30k – $100k per day of advertising, versus $750k per day of native, why wouldn’t they go with the celebrity? You don’t get any detailed analytics from Snapchat, anyways. Might as well go with the celebrity!
Now the question is:
Who will Snapchat acquire to build out a full mobile analytics platform?
More and more advertisers will only pay the big bucks if they can see a proper report at the end of the day.
The other side to this is, how long will Snapchat last? If we bombard it with ads, like Facebook, will people want to keep using it? It will be interesting to see how Snapchat keeps it’s authenticity.
Find this post in LinkedIn’s Pulse, here.