Snapchat has settled on a price for ads that appear in its Discover section, and the new cost is much cheaper than what advertisers were paying just a few months back.
Snapchat's media head Nick Bell said Thursday at the NewFront presentation in New York that the company is now charging marketers two cents per view on ads that appear within the app's Discover tab. The news was first reported by AdAge and independently confirmed by Re/code.
That translates to $20 for every thousand views. In early March, just a month after Discover first launched, Re/code reported that Snapchat was charging advertisers as much as $100 per thousand views.
Discover, which was launched in January, is a section of the app where users can watch videos or read stories from a dozen different publishers like CNN, Vice or ESPN. The ads within Discover run for 10 seconds and are sandwiched between bits of publisher content as users swipe within the section.
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Snapchat's lower ad price represents a relatively substantial decrease, but it's not altogether surprising. Snapchat wasn't selling out the ad inventory before — at least not regularly. Marketers were paying the higher prices as a way to test out the new format, but it's common for ad prices to settle once supply and demand is figured out.