Snapchat is a popular social media platform that allows users to share photos, videos, and messages that disappear after being viewed. Snapchat has become an attractive advertising platform for brands looking to reach its young user base. One of the key metrics brands consider when advertising on Snapchat is cost per thousand impressions (CPM). This refers to the cost an advertiser pays for their ad to be served to 1,000 viewers on Snapchat. Understanding Snapchat’s CPM rates is important for brands looking to advertise effectively on the platform.
Snapchat’s Advertising Options
Snapchat offers a variety of advertising options for brands:
Snap Ads
Snap Ads are full-screen vertical video ads up to 10 seconds long. They appear between Snapchat content as users scroll through their Stories feed. Snap Ads are auction-based, so the cost depends on the target audience, ad competition, and other factors. Average CPMs for Snap Ads tend to range from $5-$10.
Sponsored Geofilters
Sponsored Geofilters allow brands to create custom location-based filters for events, store openings, or promotions. CPM rates start at $5 for community geofilters. On-demand geofilters for a specific location can cost between $15-$40 CPM.
Sponsored Lenses
Sponsored Lenses allow brands to create custom AR experiences and effects. According to Snapchat, Sponsored Lenses receive an average of 30 seconds of playtime and over 60 million impressions per day globally. CPM rates for Sponsored Lenses typically start at $20 and go up to $40+.
Snapchat Story Ads
Story Ads embed a brand’s ad into a sequence of Snapchat Stories from influential publishers or Snap Stars. Snapchat charges a flat fee for these placements based on the audience size, so CPM varies case-by-case. Story Ads CPMs can range from $10-$20 on average.
Collection Ads
Collection Ads allow brands to showcase multiple products in a catalog-style ad unit. The CPM rates are comparable to Snap Ads, costing around $7-$12 per 1,000 impressions.
What Impacts CPM Rates on Snapchat?
There are several factors that influence the CPM rates advertisers pay on Snapchat:
Targeting
Narrower targeting parameters like age, location, interests, and behaviors lead to higher CPMs since you’re reaching a more specific audience. Broad targeting like country-level or worldwide impressions usually result in lower CPMs.
Ad Competitiveness
CPMs tend to be higher for advertising in popular locations or around major events and holidays when more brands are competing for impressions. Less competitive times and ad placements bring down pricing.
Ad Quality
Higher-quality ads with compelling creative, sharp images, or video tend to achieve better engagement and Viewability, which Snapchat rewards with lower CPMs. Low ad quality scores lead to higher CPMs.
Auction Dynamics
Snap Ads CPMs are determined by second-price auctions similar to Google and Facebook ads. More advertisers competing to show ads to your targeted audience will drive up prices.
Inventory Supply and Demand
CPMs fluctuate based on the supply of ad inventory available and the advertiser demand for those impressions. More demand and less supply leads to higher CPMs.
Average Snapchat CPM Benchmarks
While CPMs vary significantly based on many factors, here are some average CPM benchmarks for Snapchat ads:
| Ad Format | Average CPM |
|---|---|
| Snap Ads | $7.50 |
| Sponsored Lenses | $25.00 |
| Sponsored Geofilters | $10.00 |
| Snapchat Story Ads | $15.00 |
| Collection Ads | $10.00 |
These numbers are based on averages reported in industry articles and reports. Actual CPMs vary widely based on targeting, ad formats, and other factors outlined earlier.
How to Estimate Your Snapchat CPM Rates
Brands can get a customized CPM estimate from Snapchat’s self-serve Ads Manager platform:
1. Select Your Ad Objective
Choose the result you want from your ad campaign – brand awareness, app installs, website conversions, etc. Different objectives have different CPM ranges.
2. Input Your Targeting
Define your target audience by demographics, interests, behaviors, and other filters. More precise targeting raises CPMs.
3. Select Dates and Budget
Choose your ad run dates and set a daily budget. Snapchat will estimate impressions based on this.
4. See Your Estimated CPM Range
Snapchat Ads Manager will show the estimated average CPM range your ad campaign can expect based on your inputs.
The platform also provides a “Low – High” CPM range you can expect across the duration of your campaign based on factors like auction competition.
Tips for Lowering Your Snapchat CPM
Here are a few tips to help reduce your Snapchat advertising costs:
Test Broad Targeting
Start with country-level targeting and minimal filters to get lower CPM exposure at scale. Then narrow down your targeting once you identify what works.
Advertise During Low-Demand Periods
Avoid major holidays or events when competing ad demand spikes. Schedule campaigns during off-peak seasons instead.
Use Snapchat’s Built-In Analytics
Lean on Snapchat’s free analytics to optimize your targeting, messaging, and creative to lower CPM over time.
Create Quality Video Ads
Invest in engaging ad creative and video that viewers want to watch to improve quality scores.
Leverage Snapchat Ad Partners
Work with Snapchat ad agencies and influencers with expertise running campaigns for lower CPMs.
Conclusion
Snapchat CPM rates typically range from $5-$25 depending on the ad format and targeting parameters. Narrower targeting and popular ad placements lead to higher pricing, while broad targeting and off-peak availability reduce CPMs. Brands can estimate their potential CPM rates directly in Snapchat’s Ads Manager based on their audience, budget, dates, and objectives. Following best practices around ad creative, testing, analytics, and partnerships can also help optimize Snapchat ad spending to get the lowest CPMs. With some strategic planning, Snapchat can be an affordable platform for brands to engage their audience.