July 18, 2017
Snapchat is stepping further into the deep end of the advertising pool. According to Business Insider, the network is shopping around for ad tech startups to attract marketers. As a result, Snap Inc. has engaged in discussions with AdRoll, a San Francisco-based advertising platform with roughly $91 million in venture capital funding and 35,000 customers.@Snapchat wants to buy ad tech startups to improve credibility with investors. #digitaladvertising #stockshares Click To Tweet
After releasing its Q1 2017 earnings report in May with numbers lower than desired, Snap has made extra efforts to blur the boundaries Snapchat once held sturdy in opposition to advertising and branding content. The company now targets marketing tech and ad tech sectors to bring in ad revenue.
Additionally, this latest venture may increase Snapchat’s credibility as a lead platform for advertising.
AdRoll is currently in ongoing discussions with several other bidders in addition to Snap. An offer price has yet to be established, according to Business Insider.
Snapchat Seeks to Build Advertising Expertise
Pursuing buys such as with AdRoll helps Snapchat improve its ad targeting and campaign management profile. It’s imperative that the network establishes a reputation amongst the big moneymakers rather than just its current young demographic of users. Although successful in its appeal to the younger crowd—with a competitive edge over its rivals—Snapchat needs to build an established niche in the advertising game in order to compete with Facebook, Instagram, and Google.
Business Insider reported that Snap’s stock shares fell under $17 last week. This means the public company must build bigger and stronger bridges with investors to recover. One of the qualities that give Facebook the upper hand is its solid ad and marketing foundation. Snap needs to distinguish itself similarly, but with a unique edge to make it worthwhile to investors.
What other ways can Snap improve its credibility with investors? Let us know your thoughts in the comments section below.