|Growing Pains: How Agencies See Snapchat's Ad-sales Approach
As Snapchat’s parent company — recently rechristened Snap Inc. — gets closer to a public offering, ad buyers and brands are questioning whether it can continue to provide a high level of service without becoming inflexible in its sales approach.
It’s a familiar narrative. Before Snap, Google and Facebook started out as tech companies, too, with little outward interest in advertising. Then, as the audience grows, things change.: They need to make money, so they build sales teams and cozy up to agency buyers. As its IPO looms, Snap needs to show it can monetize more than ever before.
This month, Snapchat opened its ads API in part to appease agencies. It’s billed as a “middle-tier” offering, allowing partners to plug into the app to deliver ads on an auction-based basis. “It is really nice, because it has been pretty expensive to work with Snapchat otherwise,” said Mike Dossett, manager of digital strategy at RPA.
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This article was published on Digiday.com. A full link to the original piece is after the story.
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