Monday, October 27, 2014

Ads have arrived for SnapChat

SnapChat is finally incorporating Ads into its product. The ads be inserted into users' "Recent Updates" feeds and will not play automatically. Rather, the ads will only play if clicked on and disappear after being viewer or after 24 hours. These ads are not put in users' personal feeds, with the first ad being served for the movie "Oiuja". This call-to-action strategy delivers a less disruptive experience and is meant to be fun, reflecting the brand. This strategy is also in direct opposition to Facebook and Twitter, who force the ad directly into the users' feeds.

This move comes in largely from a need for the company to make money, especially following a 10 billion dollar valuation on claims of over 100million MAUs. SnapChat's key advantage in pushing "opt-in" ads versus the strategy employed by Facebook and Twitter is that SnapChat has the full attention of its users and that attention is incredibly valuable to advertisers. Furthermore, the Stories feature unique to SnapChat make it a key player for brands to employ storytelling

Source: CNN Money; Forbes

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