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Snap’s Latest Push to Boost Ad Revenue

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Apr. 5 2019, Published 7:48 a.m. ET

Snap is developing an ad network to run advertisements in other apps

At Snap’s (SNAP) partner summit in Los Angeles on April 4, the company launched Snapchat Ad Kit and Snap Audience Network, through which the company will sell ads that appear inside other apps. Its users will soon have the option to share a photo or video to its partner apps.

Apps that sign up for Snap Audience Network will fill their ad inventory with the full-screen, vertical video ads. The company will sell those ads on behalf of the partner. In exchange, Snap will earn a cut of the ad revenue. For a change, Snapchat cloned Facebook’s feature called Facebook Audience Network.

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There are many unanswered questions about how Snap will go about this

Snap’s idea behind this is that advertisers will use the Snap Audience Network to reach a larger group of people compared to advertising on only Snapchat, making it more appealing to advertisers. This move could help Snapchat generate more revenue even though its user base isn’t growing. The company is launching this feature later this year.

There are many unanswered questions about the company’s new venture including how it will track ad views of users of partner apps, how it will target it non-users, how it will be able to provide advertisers with data and maintain user privacy at the same time.

For now, all we know is that Snap is trying to take its advertising business to the next level. We’ll soon find out whether it is successful in doing so.

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