Untargeted, Disappearing Ads Coming Soon to Snapchat
With an estimated value of $10 billion, popular photo sharing app Snapchat is out to prove that it is worth every dollar as it begins to roll out its first set of disappearing ads on its platform. These ads will not be based on users’ preferences and will not target specific users; instead, these ads will appear between posts shared within the Snapchat Stories feature.
At the Vanity Fair New Establishment Summit in San Francisco, CEO Evan Spiegel says that his company is currently looking at technologies for ads since they have always been about “telling a story that leaves people with a new feeling,” and that people “just look at it if you want to look at it, and you don’t if you don’t.”
Snapchat’s most distinct feature has been the disappearance of photos and videos from viewing after a short time. This would be the biggest challenge for advertisers who would otherwise be very used to having permanent display fixtures on apps. In line with this, the Wall Street Journal reports that the company has had talks with “a dozen media companies,” ranging from magazines to television networks, and would be under a new service called Snapchat Discovery.
While there is no word yet on which companies will be the first to run ads on Snapchat, several brands have already been using the app for promotions and contests for customers. With the app predominantly catering to the teen market, Millennial-centered brands like Taco Bell and Grubhub (which also happen to be popular on the app) are most likely to be first in line as part of Snapchat’s first wave of advertising.
Snapchat is also putting more focus on their “Our Story” feature introduced back in July. Spiegel talked about his interest in having a locations-centered feature that would allow for users in a certain area or event to “communicate and share their experience.”
Since its launch in 2011, Snapchat has long been courted by many investors for potential acquisitions. It famously turned down Facebook’s $ 3 billion offer in late 2013.
What do you think of Snapchat’s advertising model? Is it a good first step to monetizing its service, and does it justify its 10 billion dollar valuation? Share your thoughts in the Comments below.
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