Snapchat is testing an ad-free subscription

At $10.50 per month, the new Snapchat+ tier allows users to access the platform without interruptions from ads in the Story and Lens sections. Snapchat has initiated testing of this paid subscription plan in Australia. While users at this level can avoid ads in Story and Lens, they may still encounter sponsored content or AI-generated responses.

Why does this matter for us?

If ad-free subscriptions gain popularity, it could significantly impact the volume of ads on Snapchat, subsequently affecting the effectiveness of campaigns and the return on investment for marketers. However, considering the substantial revenue from ads on Snapchat, it’s unlikely that the platform will voluntarily allow any negative impact on its advertising ecosystem.

It’s also worth noting that the popularity of paid subscriptions may shape new trends in consumer behaviors, further influencing marketing and advertising strategies on the platform. Thus, by tracking the dynamics of this development, marketers can better adapt their strategies to changes in the consumer environment and maximize the effectiveness of their advertising campaigns.

Snapchat+ Subscription Tiers

The Snapchat+ subscription tiers in Australia are currently structured as follows, with ad-free plans not widely available at the moment:

1. Monthly Plan: For $3.91 per month, users can enjoy the full version of Snapchat, including all ad formats. This amounts to a total of $46.97 per year.
2. Annual Plan: Subscribing for 12 months, users pay $2.73 per month for the version of Snapchat that also includes all ad formats. The total sum is $32.67 per year.
3. Monthly Ad-Free Subscription Plan: For $10.50 per month, users can access a version of Snapchat predominantly free from ads. The Snapchat+ subscription can be canceled at any time through the app store.

Australia Only

As of now, the ad-free Snapchat+ subscription plan is only being tested in the Australian market. It remains unclear whether this new tier will be made available to consumers in Ukraine, especially considering the platform’s significant reliance on advertising revenue in the United States.

What does John Manzano say?

Social media consultant John Manzano was the first to spot the new Snapchat+ tier, sharing a screenshot of the new offering with his Instagram followers. When asked why, in his opinion, this plan is being tested in Australia before potentially rolling out to additional markets, Manzano stated:

“This testing strategy in Australia may be related to Snapchat’s desire to gauge user reactions with a smaller audience before implementing the new plan on a larger scale. This will allow them to gather feedback and make adjustments if necessary before expanding the service to other countries.”