What Happened: Last week, Snapchat introduced its new ad product, Two Pennies, which features 10-second video ads that run between articles and videos on the Discover section of the app. Brands will be charged 2 cents a view, although the definition of a view is not yet clear. Publishing partners such as Daily Mail, Vice, MTV and CNN will be responsible for selling the ad space and will share a percentage of the revenue with Snapchat. The app recently discontinued its relatively short-lived Brand Stories ad product, where brands paid top dollar for disappearing ads.
What This Means for Brands: Snapchat Discover ads might seem ideal for brands targeting millennials, as roughly three-fourths of the app’s U.S. users are in the 18-34 range. The platform is good for sharing bite-sized, behind-the-scenes content via mobile. However, while brands need to continually find ways to engage their audience, Snapchat Discover ads might not be the best route. Snapchat Story has proved great for brands on the organic front, but the Discover feature is an opt-in experience. That means consumers might not welcome being interrupted by 10-second ads. Also, it still isn’t clear yet as to what constitutes a view – 3 seconds? 10 seconds? A millisecond? Brands may end up paying two pretty pennies for an ad that consumers don’t actually see.