Social Media

Snapchat wants agencies to dramatically increase their ad spend, says WSJ

Signage is displayed on the exterior of a Snapchat Spectacles by Snap Inc. pop-up store in New York.
Saul Martinez | Bloomberg | Getty Images

Snap Inc. wants ad agencies to promise they'll spend up to $200 million this year on its platform.

The Wall Street Journal reported that the Snapchat parent also wants multiyear commitments from those agencies, though those dollar amounts aren't now clear.

If the agencies agree, it would be up to triple the amount of money they spent last year, according to the Journal. WPP chief executive Martin Sorrell told CNBC it spent $90 million last year on ads on Snapchat. The agencies Snap talked to include WPP, Omnicom Group, Publicis Group and Interpublic Group.

If Snapchat gets its wish, it may boost its perception among investors as it heads to an IPO. The company is now valued at up to $25 billion. Snap didn't respond to a request for comment.

Snapchat ads don't come cheap. Though some ads can be purchased for under $50,0000, a single campaign usually runs about six figures and up to seven figures, one media buyer previously told CNBC. For example, sponsored lenses — filters that create effects on users' videos or photos — can run $350,000 to $700,000 a day, another source added.