Snap is the Oprah Winfrey of social media advertising as of late, announcing yet again more free ad giveaways. Only this time, the company is offering free ads to startups linked with Silicon Valley startup accelerator programs such as Y Combinator.
Earlier this month, Snap announced that it was offering free ad credits to advertisers who use Instagram, trying to lure the market away from its biggest competitor. Now, according to Recode, Snap is luring companies currently participating or having participated in these accelerator programs with hundreds of dollars’ worth of free Snapchat ads and first dibs on new ad products and creative tools.
This free ad giveaway is Snap’s attempt to build stronger relationships with advertisers and, subsequently, increase the number of bids for ad spots. Currently, because there aren’t many competitive bids taking place for Snapchat ad spots, prices and ad revenue don’t increase. The bottom line: better relationships mean more advertisers, and more advertisers mean more bids, mean higher prices.
According to Recode, Snap is also looking at the following accelerator programs: General Catalyst’s Rough Draft Ventures, First Round Capital’s Dorm Room Fund, Berkeley-based The House and San Francisco-based Runway.