Snapchat raised another $175 million from Fidelity Investments at a $16 billion valuation with that number growing every day. The photo sharing platform has transformed how social media markets to its consumers. Late last year, they added paid-lenses to help generate revenue but discontinued it just a few months later.
Lens are a great way to add some flair and excitement to Snaps, but the business model wasn’t there. Users didn’t want to pay $0.99 for something they would use once or twice in the app while there were a few others were free of charge to use. Along with the free lenses and sponsored lenses, they also have another in-app purchase in the form of a replay where you could re-view expired Snaps.
Recently, Snapchat added paid customized filters to their repertoire and it could transform the company and bring in more revenue. These on-demand geo-filters are similar to the community geo-filters your city, sponsored, and certain point of interests has right now. They are specific to the area of your choosing (min. 5000 square feet and max. 5 million square feet) and time (30 minutes – 30 days). Pricing starts are $5 and may cost more depending on the area, time, and demand. After the geo-filter is live, you’ll be able to see metrics like how many uses and views it got. These filters won’t be able to show URLs, email addresses, or Snapchat handles.
With the company growing and more people are starting to use Snapchat, this is a no-brainer and has huge potential. The price point is a steal also as Gary Vaynerchuk purchased a geo-filter around his book signing for $65. Plus, it doesn’t cost the user any money to use the overlay when they post their Snaps to their Story. Brands have started to use Snapchat for marketing the past year and it has definitely helped a lot of brands and influencers spread their word. Even celebrities like DJ Khaled have gained a whole new level of fame just because of Snapchat.
When they first announced it, I thought brands were going to purchase these geo-filters for events like Coachella and SXSW where a lot of geo-filters available will feel like spam. However, Marketing Land tried purchasing customized geo-filters for SXSW but had it revoked 11 days after being approved because “the Geofence that they’d selected overlapped with too many current or previously scheduled on-demand geo-filters and could not be purchased at this time.” This meant larger companies with a higher bankroll won’t necessarily have an advantage over smaller companies.
These custom geo-filters are a great idea because it can be used by anyone (personal or commercial). Advertisers can add them to their campaigns, companies can use them to promote their product, and the general public can use them for birthdays, weddings, or anything in general. For a relatively small amount of money, you can get your brand across a certain demographic that you might not be able to otherwise.