Snapchat’s Ad Experiments Continue with Sponsored Lenses

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Snapchat will begin selling sponsored picture and video lenses this fall, reportedly for as much as $750,000 a day.

The lens feature was added to the Snapchat app last month. It overlays pictures and videos with motion graphics that, for example, can turn them into virtual zombies, give them bug eyes or allow rainbows to spew from their mouths.

For peak days, such as Halloween or Thanksgiving, sponsored lenses will cost advertisers as much as $750,000 to reach all of Snapchat’s users, according to a report from the Financial Times, which cited sources familiar with the advertising scheme. Off-peak days will cost $450,000. Snapchat will design the lenses and Hollywood studios are likely first sponsors.

Sponsored lenses are one of Snapchat’s varied attempts to generate revenue from its now 100 million daily active users. The company has experimented with different revenue models, including in-app advertising and a recently launched replay feature that allows users to call back three disappeared messages for 99 cents.

Snapchat Chief Executive Evan Spiegel has stressed his company needs to focus on generating revenue earlier than predecessors Facebook and Twitter due to the extra scrutiny facing advertising-based businesses and as a way to justify future valuations.

With advertising sales active for about 11 months now, Snapchat is reportedly bringing in revenue at a $100 million annualized run rate and has reached a valuation of $16 billion.

Technology reporter Garrett Reim can be reached at [email protected]. Follow him on Twitter @garrettreim for the latest in L.A. tech news.

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