How much does it cost to place an ad on Snapchat?

In addition to the minimum cost per day of placing an advertisement on Snapchat, the billing, bidding, and budget options chosen determine the total price of the advertisement.

Overview

Advertisement placements on Snapchat tend to be highly customisable and engaging to audiences. Pricing is one of the customisable aspects of advertisement placements on the platform.

Besides the minimum daily amount, the billing, bidding, and budget options that you choose for your campaign will determine the total cost of the advertisement.

About Snapchat advertisements

All businesses, including small, medium, and large businesses can create accounts and start advertising their goods or services on Snapchat.

Advertising, in any one of the many formats available on this platform, can help your business reach highly engaged audiences who will interact with and take notice of your business if your content is interesting and creative enough to catch their attention.

This high level of engagement, paired with the customisable aspects of placing an advertisement on Snapchat, draws in many businesses that are targeting a younger audience demographic and want to grow their brand’s digital presence.

How much does it cost to place an ad on Snapchat?

The customisable pricing structure is one of the features that attract advertisers from different businesses to Snapchat. The minimum cost for a business to place an advertisement is $5 a day.

With over 265 million daily viewers, this brings the average cost per impression to advertisements on the platform to about $2.95.

However, the price that you end up paying for specific advertisements, advertisement sets, and campaigns vary according to a few factors.

The most important factors to understand regarding how much an advertisement placement on Snapchat costs, include:

Factor Description
The billing strategy This is how Snapchat bills you for the advertisement’s placement
The bidding strategy This is how you determine what you are willing to pay to have the advertisement featured
Your budget for the advertisement This is the maximum amount you are willing to pay for the advertisement’s placement

Snapchat’s billing strategies explained

Snapchat’s Ads Manager tool is very goal-oriented, which is useful for advertisers who want to determine their conversion rates from advertisements on the platform.

This has prompted Snapchat to offer advertisers a goal-based billing approach, where advertisers are billed according to the amount of users that complete certain goals and according to the amount of impressions on each advertisement.

This approach helps advertisers determine the optimal advertisement placement for achieving specific goals.

Even within this goal-based billing approach, Snapchat still charges businesses according to the number of impressions that their advertisement generated. Here, Snapchat will charge the business per 1000 impressions on the advertisement.

However, when taking goal-based billing into account, most of these impressions are most likely from users who are likely to complete the desired action and will not go over the maximum amount specified by the goal-based billing approach.

Snapchat’s bidding strategies explained

In terms of bidding, Snapchat works in much the same way as many other social media platforms, where your business can set a bid for your ad to be shown to users who fall into your target audience.

The three main bidding strategies used by Snapchat are:

Bidding strategy Explanation

Auto bidding

This is a highly automated form of bidding where Snapchat’s algorithm decides how much to spend on each impression generated by an advertisement, as it fits into your budget amount.

Max bid

Here, the Snapchat algorithm still tries to optimise the bid for each impression, but you have to set a maximum amount that these bids cannot exceed.

Target cost

This approach allows you to enter a target amount that you would like the Snapchat algorithm to aim for when it decides how much to bid per impression on the advertisement.

Snapchat’s budget options explained

There are several budgeting options that can be utilised for individual advertisements on Snapchat. The minimum amount you will have to spend each day is $5, but the maximum can be determined by any of the following budget options:

Budget option Explanation

Daily budget

Will limit the amount spent in a day

Lifetime budget

Will limit the amount spent over the advertisement’s lifetime

Campaign caps

Will limit the total amount spent on campaigns

Final thoughts

Many businesses want to advertise on Snapchat to reach a younger, more highly-engaged audience with their content.

However, there are costs involved in placing advertisements which are determined by the goal-oriented and impressions billing strategy, the type of bidding used for the advertisement, and the budget set by your business.