Showing posts with label Stories. Show all posts
Showing posts with label Stories. Show all posts

Friday, April 05, 2019

Snapchat organized its’ first partner summit.


Snapchat held partner summit, during which it introduced its’ audience network similar to that of Facebook. Professionals in the industry point out that Snapchat is quite often closed and do not reveal any plans, but this kind of events help them to be more transparent and show the progress. The social network is popular for vertical videos and with this innovation it will be able to place vertical ads on other partners’ apps. It is interesting that they also started partnership with Tinder and want to integrate Snapchat Stories into the app. Some experts also notice that ad networks are usually created, when all of the inventory on the platform itself is sold, but it does not seem to be the case with Snapchat.

Additionally, the company couldn’t neglect fast development of gaming and shared some information about it during the summit. However, it was not very surprising, because Snapchat recently partnered with a game streaming platform called Omlet Arcade. Games will also have integrated commercials, the part of thr revenue from which will go to developers.


Sunday, June 18, 2017

Snap’s Challenge: How to Grow Without Getting Awkward



This article in the WSJ details the challenges that Snapchat will face in generating advertising revenue.

According to Barclays, the best ad lever that Snapchat has is it's stories feature, which stitches many different snaps together, and makes them available for 24 hours. Ads using the stories feature currently generates about 25% of the company's ad revenue, with the rest coming from sponsorships and other publisher content.

Outside of Stories, Snapchat doesn't have any algorithms to allow for seeing ads in the user experience, unlike Facebook. Facebook has a news feed where ads are placed between posting to posting.

The problem is, using Stories to create ads is costly, and since there's no share feature, it doesn't have the ability to go viral. The valuation of Snapchat is quite impressive, but it sounds like the business model still needs to be determined, and there's risk that it never is. Given this, I'd probably short the stock.


https://www.wsj.com/articles/snaps-challenge-how-to-grow-without-getting-awkward-1497528001