Discover is a place inside the Snapchat app where users can read
articles and watch videos from 11 media companies, including Daily
Mail, CNN, ESPN, Vice and People. Snapchat users spend on average
nine minutes a day on Daily Mail content in Discover, Mr. Bell
Mr. Bell didn't explain what constitutes a view. Is an
advertiser charged, for instance, when someone watches the full
10-second ad? Or is it following in the steps of Yahoo, which
charges advertisers for a view after someone watches an ad for at
least three seconds?
A Snapchat spokeswoman didn't immediately respond to Ad Age's
questions about the matter.
Snapchat has spent the last several months experimenting with
how to price ads on Discover, according to Mr. Bell. He didn't go
into specifics about the pricing, but a report
on Digiday said the app had been charging advertisers 15 cents
a view for Discover ads. Publishers are responsible for selling ads
against their Discover content and split a percentage of the
revenue with Snapchat.
"I think it's transformative," said Jon Steinberg, North
American CEO at Daily Mail. He shared the stage with Mr. Bell and
called Two Pennies "one of the great advertising products" -- in
league, he claimed, with Google Adwords, YouTube's
TruView and Facebook's sponsored updates.
"We are ready to sell that immediately," added Mr. Steinberg,
who's the former president of BuzzFeed. "We are ready to produce
The Daily Mail-Elite Daily event was the last of this year's
NewFronts, capping off two weeks of presentations from media
companies pitching their digital video series to advertisers. The
companies presented together because Daily Mail bought Elite Daily
in January for a
reported price of $40 to $50 million.
Elite Daily prides itself on being a site created by millennials
for millennials -- a word that was thrown around often during the
NewFronts as a whole. Most of the videos previewed at Thursday's
low-key NewFront were from Elite Daily, including an Artists in
Residency program featuring young filmmakers who will make
exclusive videos for the site.
"We're very much an up and comer in this," Mr. Steinberg said,
referring to both sites' nascent video efforts.
The NewFront comes as the Daily Mail is trying to raise its
profile among the advertising community to remedy what Mr.
Steinberg has called the company's "Madison Avenue problem." That
is, despite the size of its audience, the Daily Mail's ad revenue
in the U.S. remains relatively low. During the company's last
fiscal year, which ended in September 2014, the Daily Mail
generated about $19 million in U.S. revenue, according to its
U.K.-based parent company DMGT.
Contributing: Tim Peterson