Snapchat, the newish social media darling, recently announced that users would start seeing seeing advertisements on the mobile platform. CEO Evan Spiegel indicated that the ads would appear on users "stories" page and that they would be optional to view.
While some big brands, like Taco Bell, have experimented with using Snapchat as a way to reach users, this development marks a distinct change in Snapchat's business plan in that it will now be able to derive income from advertisers using the platform.
With this change, analysts believe that Snapchat has the potential to because the "YouTube" of mobile platforms. Different from other platforms who rely on wooing potential advertisers with the amount of data they have collected on users, Snapchat is emphasizing the platform's sheer reach. Additionally, the company believes that the option to view the ads will actually make them more effective verses pushing them to users.
While some big brands, like Taco Bell, have experimented with using Snapchat as a way to reach users, this development marks a distinct change in Snapchat's business plan in that it will now be able to derive income from advertisers using the platform.
With this change, analysts believe that Snapchat has the potential to because the "YouTube" of mobile platforms. Different from other platforms who rely on wooing potential advertisers with the amount of data they have collected on users, Snapchat is emphasizing the platform's sheer reach. Additionally, the company believes that the option to view the ads will actually make them more effective verses pushing them to users.
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