Snapchat wants all the monies

Ahead of its upcoming IPO Snapchat is wanting all the monies after reports the company has been asking advertisers to commit to $100 – $200 million ad spends on the platform.

Snapchat is in talks with the media-buying arms of several big advertising companies, including WPP PLC, Omnicom Group Inc., Publicis Groupe SA, and Interpublic Group of Cos., and is seeking ad-spending commitments of $100 million to $200 million for 2017 from each firm.

Literally doubling or in some cases tripling what the firms currently spend.

WPP has spent $90million the platform just last year.

If companies do commit, the value of Snapchat would significantly boost its value which currently stands at $25 billion.

Snapchat ads do not cheap, with a single campaign and lenses running into six figures, although it is quite possible to buy some ads for under $50k.

While this sounds good for investors, a platform is only as good as its users and there are concerns that Snapchats advertising may affect user experience

“There is a natural evolution with every platform where they go from purely a hot cultural phenomenon and transform into a real functioning business,” said Mike Dossett, manager of digital strategy at agency RPA to CNBC. “They need to balance maintaining some of the magic of the platform.”







Charis McAwesome

Charis McAwesome is the full time writer of hashtagme and was previously a social media manager/advisor to companies including Microsoft, Intel, Lenovo, Deloitte, Tertiary institutions, banks and many more. Charis still provides digital strategy and big data analysis as a consultant.