Yahoo Finance Snapchat gets serious about advertising
Snapchat is opening its advertising floodgates.
As Snap reportedly buckles down to go public, the company behind the ephemeral sharing app said Tuesday that it is now adding several more ways for advertisers to plug into its system and buy self-serve ads in the app.
Snapchat had previously not let just any advertiser into its app, limiting opportunities to companies that worked directly with Snapchat's team. The move effectively opens the door to a much wider set of brands that might have previously felt limited by the need to work directly through Snapchat's own platform.
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In doing so, Snap is following the path of more mature rivals like Instagram, which made a similar move nearly two years ago. As with that transition, the most pressing question for users will be whether the company can avoid opening the app to a flood of low-quality ads as a host of new advertisers get their hands on automated tools.
The company is adding sixteen new partner companies to facilitate the switch, including six additional third-party ad buying platforms, five targeting firms and five companies that provide creative software for ads.
The company also said its ads API is now officially beyond its beta stage after a four-month trial period that involved major brands like Gatorade, Nissan and McDonald's.
Analysts expect Snapchat's ad platform to continue to grow at a breakneck pace. The research firm Emarketer said it projects the company's ad revenues will double in the next year from $348 million to $804 million.
