Snapchat has announced the development of a private marketplace for advertisers, which could bring brands to publishers for potential ad revenue.
On the agenda
Advertisers are now able to book advertisement space within specific channels and shows created by publishers and their ad partners.
Publishing partners on the new self serve ad platform already include BuzzFeed, ESPN, Hearts, NBC Universal, and VICE.
According to Peter Sellis, Snapchat Director of Product Revenue, “We’re moving away from that part of the business that was a long arduous manual process to take advantage of programmatic.”
Splitting the loot
Snapchat’s Discover ad model splits revenue between the platform and publishers, while allowing advertisers to target specific age demographics.
Ads like Hearst’s Cosmo channel are reaching 30 million visitors a month, with average Snapchat Discover shows attracting 5 million views a month.
Snapchat ad costs are expected to rise from roughly $3 per 1000 impressions to $10. The push into showcase advertising could give Snapchat an edge on the competition.
Do you watching content on Discover Shows? Would you be inclined to buy ad space with the new model? We want to know what you think in the comment section below.