Soon after going public, the Snap Inc. company’s main product Snapchat is primed to work with big advertising companies trying to reach a new set of consumers. Snapchat has quickly become one of the fastest growing internet brands, encouraging users to be involved and driving ever increasing numbers of views and interactions. Advertisers concerned with getting their message across to as many individuals as possible have taken notice of the potential to reach as many users as other well established internet and tech giants.
Recently, advertising giant, WPP announced that it was ready to spend up to two hundred million in advertising dollars during 2017 on the Snapchat platform. This is the largest advertising announcement that Snapchat has been mentioned in to date, but certainly not the largest for the WPP advertising firm. Still, this bump in dollars being committed to the platform is a great indication that the firm sees and understands the value in the Snap brand, having invested in previous years and choosing to invest even more advertising dollars this year.
The CEO announced this increase in spending during an interview, and said that it was more than double what the company spent on advertising last year. Snap as a brand promised that it would work to increase advertising dollars by companies just like WPP across its platform in order to make the product profitable for investors when it went public. This announcement bolstered the brand and made other advertising firms take a look at the platform they have undoubtedly heard of, but might not have realized had a lot of advertising potential. In fact, reports were made that the brand was seeking advertising commitments when it went public in order to encourage investments and prove the worth and stability of the company.
Currently Snap doesn’t bring in nearly the same amount of digital advertising dollars that Google and Facebook see, but it is starting to make its mark and is realizing real growth that can be measured and tracked.