Snapchat’s Discover section — which houses daily-updated content from the likes of The Daily Mail, Vice, and CNN — is serving just 2.5 ads a day on average across all its 12 channels, according to data collected by AdAdge.
That’s despite Discover publishing 110 stories a day on average across the 30-day period AdAge collected data from July 13.
And with Snapchat claiming 60 million users visit the Discover section each month (out of its 100 million total users,) it could seem that the photo-sharing app is failing to take advantage of a huge monetisation opportunity.
In the period AdAge analysed, just 18 brands — including Ford, Gatorade, HP, Dick’s Sporting Goods, and T-Mobile — had their ads served on Snapchat.
The data reiterates the softly softly approach Snapchat is taking when it comes to ad sales. Last month several senior advertising agency and brand-side marketer sources told Business Insider they were desperate to work with Snapchat, had contacted Snapchat to get started, but their campaigns had yet to get off the ground.
Demand appears to be outweighing supply as Snapchat takes a methodical, disciplined approach to building out its businesses, starting with the biggest brands and advertisers in the world, before opening up Snapchat ads to everybody.
Snapchat tells Business Insider that Discover is just six months old and that its primary objective with the section was creating engaging content. The Snapchat spokesperson added that Snapchat only started actively selling ads on Discover at the end of July. And generally on the app, Snapchat employs frequency capping so users aren’t bombarded with the same ads over and over again.
Nevertheless, just one ad for every 44 stories does appear to be a tiny ad load, even at this stage in the company’s life-cycle.
But on the other hand, maybe it shows just how big a revenue opportunity Snapchat has ahead of it with Discover: Demand from advertisers is high, there’s plenty of content, there are tens of millions of users, and Snapchat’s already charging big ad rates to reach them.
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