Snapchat is joining other social media platforms in capitalising on ads. The company is now working on an application programming interface (API), allowing partners to buy more targeted ads. Will this be the game changer in the app's business?
Mobile apps, in one way or another, need to find an income generator to keep it progressing. Snapchat is striving on just that as it works on a crucial component of its growing digital ad business. Snapchat already talked to ad agencies and ad technology companies about its API. According to sources familiar to the matter, Snapchat asked the firms on their requirements for such software. These talks can be considered as the company's way of preparing the groundwork for the new technology. Testing can come as early as spring.
“Snapchat’s ambition going into 2016 is to have many more opportunities for e-commerce on the platform and other stuff that is more about building audiences,” Digiday quoted an ad agency executive with direct knowledge of the plans.
The report also highlighted the importance of the decision, noting that Snapchat will finally be following the footsteps of other leading social media platforms namely Twitter, Instagram and Facebook. The API will give way to more kinds of ads like app installation, product buying and other call to action ads. Many consider direct-response formats as crucial for mobile ad businesses looking to reach more partners and marketers.
According to Fortune, under the new API technology, advertisers can integrate Snapchat compatibility to other automated systems that they use presently to buy ad units. This can increase the volume of ads displayed and sold on the messaging platform. Furthermore, Snapchat will offer advertisers new ways to reach their targets beyond standard categories like age, location and gender.
“The first thing an API does is allow them to create a partnered ecosystem that is technology driven,” explained Sean O’Neal, president of Adaptly, which builds for all the major APIs. “There’s only so much that a company is going to be able to develop themselves as it relates to their own native ad solutions,” he added.