Snapchat has started testing an ad-free paid subscription plan in Australia.
For $US10.50 a month, the new Snapchat+ tier enables consumers to use the platform without disruption from Story or Lens ads.
However, the app notes that users may still see sponsored places or My AI responses.
Why we care. Should ad-free subscriptions gain popularity, there is a potential for a notable impact on ad reach within Snapchat, subsequently affecting campaign performance and advertiser ROI. However, considering the substantial revenue generated by ads on Snapchat, it is improbable that the platform would willingly allow any negative impact on its advertising ecosystem.
Here is a breakdown of the various subscriptions currently offered in Australia. It’s important to note that as of now, ad-free plans have not been made widely available:
Monthly plan: For $US3.91 a month, users can experience a version of Snapchat that serves all ad formats – this totals to $US46.97 a year.
Annual plan: By signing up to a 12-month subscription, users pay $US2.73 a month for a version of Snapchat that serves all ad formats – this totals to $US32.67 a year.
Ad-free monthly plan: For $US10.50 a month, users can experience a mostly ad-free version of Snapchat.
Snapchat+ subscriptions can be cancelled any time in the app store.
Australia market only. The ad-free Snapchat+ subscription plan is currently only being tested in Australia. It’s unclear if the new tier will be rolled out to consumers in the US given the platform’s reliance on ad revenue in America.
First look. The new Snapchat+ tier was first spotted by social media consultant, Jonah Manzano. He shared a screenshot of the new offering with his followers on Instagram:
When asked why he thought the plan was being tested in Australia before potentially being rolled out to additional markets, Manzano said:
“The perception that Australia gets new features first may stem from social media companies choosing the country for initial testing due to its diverse user base and advanced technological infrastructure.”
“It’s not solely based on laws or regulations but rather a strategic decision influenced by factors like user engagement and feedback.”
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Deep dive. Visit the Snapchat Help Center for more information on the platform’s ad-free subscription plans.