Snapchat’s sponsored Lenses allow brands to create branded augmented reality experiences that Snapchat users can access through the camera in the Snapchat app. Sponsored Lenses have become an increasingly popular advertising format on Snapchat, providing brands with the opportunity to reach Snapchat’s large and engaged user base in a creative and interactive way. But how much do these sponsored Lenses actually cost advertisers on a per impression basis? Let’s take a closer look.
What are sponsored Lenses?
Sponsored Lenses are Snapchat’s augmented reality advertising product. Brands work with Snapchat to create branded Lenses that have special effects, interactive elements, and other experiences built around the brand. For example, a beauty brand could create a Lens that adds branded makeup or hairstyles to users’ selfies. An entertainment property could have a Lens that surrounds users with characters or environments from the show or movie.
When a user engages with a sponsored Lens, by actively selecting it from the Lens carousel and applying its effects to their Snaps or selfies, it counts as a sponsored Lens impression for the brand. Sponsored Lenses are different from Snapchat’s other ad products in that they rely on voluntary user engagement rather than forced views.
How do sponsored Lenses work?
Sponsored Lenses appear in the Lens carousel alongside Snapchat’s own editorial Lenses. When users swipe through the Lens carousel while in Snapchat’s camera, they will see branded Lenses mixed in with non-branded ones.
If a user selects a sponsored Lens and engages with it by using it in a Snap or selfie, the brand is charged for one sponsored Lens impression. The Lens remains available in the carousel for a total sponsored period (usually one day), during which it can accumulate more impressions each time a user selects it.
Brands buy sponsored Lens campaigns based on number of days and estimated/guaranteed impressions. But how does this translate into cost per impression?
What factors impact the cost per impression?
There are several key factors that impact how much a brand will pay per sponsored Lens impression:
1. Length of sponsorship
Brands can sponsor a Lens for as little as a single day or for extended campaigns of up to several months. When sponsoring for longer periods, the cost per impression goes down.
2. Guaranteed impressions
Some brands agree to guaranteed impression minimums, which means they pay for a certain number of impressions regardless of how many times the Lens is actually used. This increases the effective CPM.
3. Production costs
Creating a sponsored Lens has production costs for the brand. More complex Lenses require more development time and resources, increasing costs. Simple sponsored Lenses can be cheaper to produce.
4. Exclusivity
If a brand wants exclusivity for a Lens, such as being the only sponsored Lens that day, it will pay more for that privilege. Non-exclusive Lenses cost less per impression.
5. Audience targeting
Brands can target Lenses to specific demographics and user interest groups. Targeting smaller niche audiences costs more per impression than broader targeting.
6. Time of year
Like most advertising, Lens costs fluctuate based on seasonal demand. Major holidays and event times tend to have higher impression costs due to increased competition.
7. Ad budget
Brands with higher overall Snapchat ad budgets typically get better bulk discounts, lowering their effective CPM.
What are typical CPM rates?
Given all these factors, the actual cost per thousand impressions (CPM) for sponsored Lenses covers a wide range. Here are some typical CPM ranges:
– Broad general audience Lens for 1 day: $20-50 CPM
– Niche targeted Lens for 1 week: $80-120 CPM
– Holiday/event Lens for 1-2 weeks: $100-200+ CPM
– Extended 2+ month wide-reach Lens: $30-60 CPM
While individual brands likely negotiate their own specific rates based on campaign details, these ranges reflect the general market for sponsored Snapchat Lenses according to industry sources.
To put this in perspective, Snapchat’s average CPM across all ad units was $6.62 in Q4 2020. So sponsored Lenses command significant premium CPMs compared to Snapchat’s average.
Sponsored Lens Campaign Examples
To make this more concrete, here are some real-world examples of sponsored Lens campaigns and the estimated cost per impression:
HBO – Game of Thrones
For a Game of Thrones sponsored Lens tied to the season premiere, HBO reportedly paid between $450,000 and $750,000 for a single day sponsorship. With an estimated 10-20 million impressions, that works out to a $22.50 to $75 CPM.
Gatorade – Super Bowl
Gatorade’s Super Bowl-themed sponsored Lens was estimated to cost between $500,000 and $700,000 for a one-day sponsorship and delivered around 15-20 million impressions. That’s around a $25 to $46.67 CPM.
Taco Bell – Cinco de Mayo
Taco Bell sponsored a Cinco de Mayo Lens for multiple days leading up to the holiday. While costs weren’t disclosed, industry estimates pegged it around $250,000 for a three day campaign with 25-35 million impressions delivered. That would work out to roughly $7.14 – $10 CPM.
Michael Kors – Holiday
According to reporting, Michael Kors paid over $750,000 for a two-week sponsored Lens during the 2018 holiday season that garnered around 22 million impressions. This more premium campaign cost around $34 CPM.
Pros and Cons of Sponsored Lenses
What are the upsides and downsides of using sponsored Lenses as part of your Snapchat advertising strategy?
Pros
- Creative and interactive format stands out
- Leverages AR technology that resonates with Snapchat’s young users
- Drives significant engagement based on voluntary opt-in
- Can support branding objectives beyond direct response
- Relatively exclusive and not saturated ad unit
Cons
- Expensive on a pure CPM basis
- Short shelf-life for each Lens
- Costly and time-intensive to develop
- Unproven performance for lower-funnel conversions
- Impressions concentrated around holidays and events
Best Practices for Snapchat Lens Campaigns
Here are some tips to maximize the impact and cost-efficiency of your next sponsored Lens:
- Start early – Lenses take significant time to conceptualize, create and approve
- Have a clear goal and call-to-action
- Experiment with interactive elements to drive engagement
- Promote the Lens outside of Snapchat to drive awareness
- Measure impressions, reach, engagement and conversions
- Rotate multiple Lenses over longer campaigns
- Reuse and refresh assets from previous Lenses
- Negotiate pricing and factor it into your media mix allocation
Conclusion
Sponsored Lenses allow brands to stand out and generate significant engagement in a captive environment. But brands need to weigh the benefits against the high media costs, development requirements, and unproven performance. For one-off branded “moments” tied to big events that align with Snapchat’s youthful audience, sponsored Lenses provide impact. But brands should build campaigns with realistic expectations around both creative effort required and the high cost per impression.