NEW YORK: Snapchat is hugely popular with Millennials and advertisers are paying top rates to appear there even though the social networking app's lack of data means they struggle to assess its effectiveness, but that situation could be set to change.

"Snapchat is one of the only platforms with a growing user base, so it will be able to command premium prices as long as the eyeballs are there," Matt Rednor, CEO and founder of creative agency Decoded Advertising, told Mobile Marketer.

He reported that "Marketers are still a little hesitant since Snapchat does not have robust measurement and analytics in place on the ad side, so it is tough to justify the spend beyond just a cost per impression or cost per view standpoint.

"Once that rolls out, prices will start to normalise based on what impact the ads actually deliver," he added.

The current picture, coupled with the fact that content disappears after 24 hours, means that many marketers are choosing to use the platform for testing purposes rather than full-blown campaigns.

Snapchat also offers potential as a social commerce platform via its Discover channels; Sweet, produced by publisher Hearst, is one set to take advantage of this development.

But to be truly effective in this regard, "it is going to have to productise its data in order to retarget its users off of Snapchat," according to Christian Brucculeri, CEO and director of messaging specialist Snaps.

"If Snapchat is able to open its platform, I think we will see it as an extremely valuable e-commerce channel," he told Luxury Daily.

"However, it is not really a platform yet," he said. "It still looks a lot more like a media property because it is a closed ecosystem."

Data sourced from Mobile Marketer, Luxury Daily; additional content by Warc staff