We lowered our Snapchat ad revenues forecast twice because of the company’s shift to selling ads programmatically, which eroded its ad prices. Since adopting automated selling, Snapchat’s CPMs fell below $10 and have stayed there, according to Digiday. Previously, Snapchat used a managed-service ad selling model, and back in 2015, it reportedly charged brands $750,000 per day to advertise on its platform.
“Self-serve programmatic buying has expanded Snapchat’s reach to more advertisers, especially small and medium-sized businesses that can invest in ads at lower bid prices. However, moving the vast majority of their ad inventory into this lower cost structure has tempered earlier growth estimates,” said Monica Peart, senior forecasting director at eMarketer.
Source: How is Snapchat’s Advertising Business Doing? – eMarketer Trends, Forecasts & Statistics