Snap wants to go deep and broad with advertisers
Rebuilding the Snapchat app for Android devices isn’t the only major change Snap (SNAP) is undertaking as it seeks to grow its revenue and drive toward profitability. The other major change the company has made in its operations has been the reorganization of its sales team. According to Snap’s chief business officer, Jeremi Gorman, Snap’s reason for reshaping its sales team is that the move will allow the company to go deep and broad with global advertisers.
Last year, Snap partnered with advertising technology company Tyroo to help it expand its advertiser reach in India, one of the countries in which advertising budgets are steadily shifting online.
Revenue rose and losses narrowed
Snap’s reconfiguration of its sales team has resulted in a set of specific sales experts becoming focused on emerging advertiser accounts with the goal of enhancing relationships with Snap’s advertising partners. According to a report from eMarketer, Snap and Twitter (TWTR) each captured 1.0% of the digital advertising market in the United States in 2018. Amazon (AMZN) captured 4.2% of the market, while Facebook (FB) and Google (GOOGL) dominated the scene with 20.6% and 37.1% market shares, respectively. Because Snap currently lags far behind Facebook and Google in the race for advertising dollars, the company has seen it necessary to reorganize its sales force to better compete with the top guns.
Snap’s revenue rose 36% year-over-year to $389.8 million in the fourth quarter, and the company posted a loss of $191.7 million in the period. This loss narrowed from $350 million a year ago.