The rise of Snapchat could be bad news for social media stocks, but some should be more scared than others. According to CLSA analyst James Lee, Twitter Inc TWTR 21.42% could be the biggest victim of Snapchat’s success.

CLSA recently conducted an investor conference call with an advertising expert from a leading ad agency. Not only is Snapchat expanding its ad offerings by offering more ads in User Stories, its ads are also priced at a premium to peers.

“The engagement rate, measured by the CTR (click-through rate) of swipe-ups, is above peers at 7.5 percent, which enables the messaging platform to charge a premium compared to peers and is encouraging for the early start,” Lee explained.

Snapchat video ads are priced at $20 CPM (cost per thousand), much higher than Facebook Inc FB 1.63%’s $6 and Alphabet Inc GOOG 0.04% GOOGL 0.12%’s $8 for YouTube.

Although the shift in video advertising from TV to online is still in the early stages, Lee believes…

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