Snapchat monetises Discover with new Channel for advertisers
Snapchat launched a temporary Discover Channel yesterday, purely for advertisers. Sony Pictures Entertainment was the first company to buy a "sponsored" Discover Channel, where they shared multimedia content for the new James Bond film, Spectre. Normally, marketers are only allowed to advertise within a Discover Channel by placing an ad alongside a publishers’ content. Snapchat's ad strategy is constantly changing so it is unclear whether this new feature is here to stay however it is a clever way to monetise the platform whilst giving advertisers more space. 

James Bond is usually known for his suave clothes, his panache, his ability to use guns. But in Spectre, he also has some smooth millennial audience engagement.

The upcoming 007 installment Spectre has launched the first-ever branded channel on Snapchat in the exclusive section of the image app usually reserved for content from its 15 media partners.

The 24-hour offering of behind-the-scenes footage, cast and crew interviews and preview clips grabbed the top spot in Snapchat's Discover section starting at midnight Pacific time Sunday night, temporarily bumping the iHeartRadio channel down to a row of its own or even off-screen for some iPhone models.

Clearly tagged as a "sponsored" channel, the addition resembles the native advertising plays that are increasingly taking up space on most online media websites.

For today only on @Snapchat(opens in a new tab) you can access exclusive #SPECTRE(opens in a new tab) content on the first-ever Discover channel for a film! pic.twitter.com/n39wdUfTyY(opens in a new tab)— Sony Pictures UK (@SonyPicturesUK) October 26, 2015(opens in a new tab)

The prominent ad placement is the latest in a wave of ad experimentation that has taken Snapchat ads a long way since the Santa Monica-based social media company first freaked out users with the platform's very first ad a year ago to promote another Hollywood film, the horror flick Ouija.

Since then it has tested out a range of novel ways to better capture the attention of its largely millennial user base with some mixed results. Advertisers can now mix their ads in with content from Snapchat's media partners, create branded geo-filters that let users spread their logos on their own and intersperse their messages with Snapchat's daily servings of live news stories.

Not everything has worked out as planned. Last month, Snapchat shut down(opens in a new tab) its original content arm and put its plans to churn out its own shows and videos on hold indefinitely. While the company claims its Discover attracts big numbers, there have been concerns(opens in a new tab) in the past that Snapchat is not squeezing as much money out of it as it should be.

Still, the company's cachet among young people and distinctive take on mobile advertising makes it a highly sought-after destination for most marketers.

Giving a brand the run of its own channel in the high-demand Discover section represents Snapchat's biggest step towards native programming yet. And given the pattern(opens in a new tab) of high price tags for Snapchat ads, the placement most likely didn't come cheap.

Snapchat did not respond to our requests for comment about pricing or future plans for sponsored channels.

With relatively big marketing budgets to ensure box office turnouts, Hollywood has been eager to experiment with social media promotion. According to research firm eMarketer(opens in a new tab), the entertainment industry is expected to spend $2.8 billion on digital advertising this year.

Star Wars has been among the first to use new Instagram advertising tools, and last week, the film used a mostly online campaign to stoke excitement for online pre-sale tickets and a much-hyped new trailer. A meme generator to promote the movie Straight Outta Compton went viral in August to the point where other brands were even using it to promote their own products.

Judging by the comments on Twitter, the reaction to the story has been fairly positive.

The #Spectre(opens in a new tab) snapchat has to be the best story I've ever seen on there — Tom G (@TomG_274) October 26, 2015(opens in a new tab)

This is freaking awesome @Snapchat(opens in a new tab) has #SPECTRE(opens in a new tab) @007(opens in a new tab) theme — AFNAN AZAD (@AfnanAzad) October 26, 2015(opens in a new tab)

Spectre @Snapchat(opens in a new tab) story was the best sponsored post I've seen on SC super engaging smart branded content. pic.twitter.com/mxcv1FuZJd(opens in a new tab)— Casey Neistat (@CaseyNeistat) October 26, 2015(opens in a new tab)