Several advertisers have warned that they will not increase their advertisement budgets for Snapchat, unless the company improves its targeting tools or provides sufficient data on the effectiveness of an ad in the platform. Users on the platform has surpassed 100 million, however with no clear ad strategy, it is hard for advertisers to gain sufficient access to their user base. Brands such as, Coca-Cola, Toyota and W Hotels, have experimented with Snapchat ads, but the success of those ads is relatively unknown, as the company limits advertisers from tapping into its user data. Ads are Snapchat's largest revenue generator, with companies paying 500,000 for regional ad packages and upward of $around $100,000 for national coverage, however, without targeted ads or leveraging ad data, many experts predict Snapchat's growth will stall.
Several advertisers have warned that they will not increase their advertisement budgets for Snapchat, unless the company improves its targeting tools or provides sufficient data on the effectiveness of an ad in the platform. Users on the platform has surpassed 100 million, however with no clear ad strategy, it is hard for advertisers to gain sufficient access to their user base. Brands such as, Coca-Cola, Toyota and W Hotels, have experimented with Snapchat ads, but the success of those ads is relatively unknown, as the company limits advertisers from tapping into its user data. Ads are Snapchat's largest revenue generator, with companies paying around $100,000 for regional ad packages and upward of $500,000 for national coverage, however, without targeted ads or leveraging ad data, many experts predict Snapchat's growth will stall.