- Snap Inc., parent company of Snapchat, bought programmatic ad platform Metamarkets?for $100 million prior to its Q3 earnings report on Nov. 7,?in line with two anonymous sources cited by TechCrunch.
- The move aims to increase Snap’s in-house ad team as it will automate ad buying due to its platform, after missing analysts’ Q2 projections with $181.Six million in revenue, largely from advertising.
- Meanwhile, research firm eMarketer cut its forecast?for Snap’s global advertising revenue by 14% to $774.2million this holiday season. As recently as March, the firm estimated the social networking platform’s global ad revenue would hit $900 million while its U.S. ad revenue would sink by 17% to $642.5 million.
With Metamarkets on Snap’s side, the provider is able to use this opportunity to increase its analytics dashboard across many properties and potentially open the entrance to greater collaboration with Metamarkets’ current customers.?Metamarkets processes billions of data points in real time, according to TechCrunch, and works with some major names in the news and programmatic advertising, signaling that the reported acquisition may be a smart one for Snap.
Snap has faced troubles since going public in March and declaring the corporation became a camera-first business – not only a social media marketing platform -?though its core function remains to be the Snapchat?photo-sharing app that highly lures Gen Z and younger consumers. The app is, and can likely stay, free of charge for consumers, meaning advertising is going to be its primary sort of monetization. The business’s latest proceed to acquire Metamarkets looks like it’s a part of its ongoing efforts to create out its ad business. And putting a programmatic ad tech platform behind its ad sales could seriously help Snap generate more revenue by appealing to marketers wanting to reach Snapchat’s mainly young consumer group.
At one time, the buying represents yourrrre able to send larger efforts to progress its base of advertisers, particularly amid hot competition from top rival Instagram, containing 500 million daily active users to Snapchat’s 173 million.?Recently, Snap made stronger efforts to interest more big-name brand advertisers with improvements for its ad formats, better third-party measurement and investments into original video programming to rekindle some excitement around continued innovation.