Dive Brief:
- According to reporting from The Information, Snapchat’s ad sales team has indicated it is considering adding app install ads to its ad unit mix.
- App install ads are a key piece of Facebook’s successful mobile advertising strategy – in Q2 of last year mobile app install ads grew 346% year-over-year.
- The ads on Snapchat would likely be found on its Discover or Stories portals and would involve video ads that clickthrough to app stores for iOS and Android.
Dive Insight:
Snapchat looks to be expanding its growing ad unit marketplace with app install ads, The Information reports. The social media platform already offers ads within publisher content, as well as sponsored filters, lenses and stickers.
A Cowen and Company survey of senior U.S. ad buyers recently found that, at 22%, Snapchat was the most popular social media platform for marketers to begin advertising on for the first time, and trailed by Instagram and Pinterest at 12% each. Advertising on the platform is still something of a question mark for marketers because it scored low for effectiveness in driving ROI and social ad targeting in a recent eMarketer report. That said, its millennial-heavy audience continues to be a draw for marketers and publishers who are increasingly turning to the app to reach those audiences.
The messaging app is currently valued at $16 billion, and according to Fortune, it is planning on $300 million in revenue this year, up from its 2015 run rate of $100 million.
