VENICE, CA: Snapchat is casting around for ways to generate user growth and ad revenue, with reports indicating some bold steps may be in the pipeline.
According to Advertising Age, the messaging app is considering a radical shift in its stance regarding ads and could require users to view three seconds of a video advertisement before being able to skip it.
Currently they can do so instantly by simply tapping their mobile screen, meaning that means that video ads on Snapchat often fail to meet the two-second minimum that The Media Rating Council has set for video ads to be deemed viewable.
Marketers may be attracted to the youthful audience that Snapchat delivers, but this digitally savvy age group doesn’t linger on ads and certainly not on ones they see as irrelevant.
“Advertisers are not spending as much as they have previously with Snapchat,” a top advertiser from a brand that works closely with the messaging service told the publication.
“They have to do something that draws more interest from advertisers, and they are getting more aggressive to address the market’s needs.”
In a separate development, Cheddar reported that Snapchat is developing a new product called “Stories Everywhere” which aims to make Snapchat Stories available outside the app for the first time.
By making it easier to share videos on other platforms through a web player that also prompts people to sign up and download the app, Snapchat could boost user growth, according to a person familiar with the matter.
It could also give the app the option to, like Twitter, offer a “total audience” number to advertisers which would include all those viewing snaps without necessarily using the app itself.
Snap is also said to be considering allowing other apps to access its feeds of user-generated videos – a move which Cheddar noted could potentially give Snap another revenue stream from content licensing.
Sourced from Advertising Age, Cheddar, Wall Street Journal; additional content by WARC staff