This week we learned that Snapchat is starting a $0.02 per view ad model for advertisers. It is important to note that early in this advertising model advertisers are paying per view in the Discover Tab. I would imagine this will change very quickly. I think the big money on Snapchat is within the Stories. Recently, in the Buenos Aires Snapchat Story, I saw three advertisements. If Snapchat is truly getting 20 to 25 million views per Snapchat Story this would put over $400,000 in their pockets. Not bad for just sharing stories within their app.
In time, I truly believe Snapchat will follow the YouTube model and have “partners”. This will allow anyone with Snapchat to put up ads within their stories. They will then be paid a portion of the advertising that Snapchat is making. If Snapchat is making $0.02 per view they may give partners $0.01 per view. Google gives Adsense advertisers 67% of ad revenue from ads click on their site so 50% would not be unheard of when it comes to advertisers on Snapchat.
If every middle and high school student can make $10 off 1000 views on their Snapchat Stories they will be all over this. They will be promoting it to their friends and all over school. Note that getting over 100 views on Snapchat Stories is a tall task so don’t think you are going to be a millionaire when, and if, this type of advertising program is ever released.
In the next few months Snapchat will have to decide if this business model is going to work within the Discover tab of the app. Most of the college students I know rarely use the Discover Tab. They watch each and every one of the Snapchat Stories but they are not watching the news through the Discover Tab. If Snapchat finds this is ineffective I think they should go all in with Stories advertising. Allow all the users to create stories and make a little bit of money through advertising and promoting. We will have to see what happens but I truly believe stories are the way to go.