Snapchat might be charging brands a bit too much for advertisements

AdWeek recently reported that Snapchat is asking brands for $750,000 per day to run its new “my story” ads. Some would argue that Snapchat’s unique ad format, engagement tactics, demographics, and immediacy make for an interesting experimental advertising opportunity. Others say that $750,000 is a lot to spend for an advertising experiment that has limited analytics, no targeting, and an inability to show ROI — especially when stacked up against other digital alternatives like Facebook. If AdWeek’s report is accurate (Snapchat had no comment on the story), it is worth asking the question: is advertising on Snapchat worth the $750,000 price tag? Although Snapchat provides a unique advertising opportunity for brands, the more robust and cost-effective alternatives like Facebook and prime-time television make Snapchat’s high-dollar ticket seem a little too bold.