Ads Not Enough, Snapchat Downgraded 25%

snapchat logo 2015With video considered the No. 1 lead-converting content marketing option by a Salesforce executive, it’s interesting to see Fidelity downgrade Snapchat by 25 percent. Business Insider reports that while the service boasts a highly sought-after audience, Millennials, it has yet to satisfactorily monetize the business.

“Since ramping up its advertising efforts,” Jillian D’Onfro writes on Tuesday, “the company is reportedly on track to generate $100 million in revenue on an annualized basis, after generating $3 million revenue on $128 million in losses in 2014. But some advertisers feel that Snapchat doesn’t offer them enough targeting options or analytics, according to [the Financial Times]. The company makes money by charging brands to sponsor videos or photos in its Live Stories section, or create their own custom photo filters called ‘Lenses.’ ”

On Tuesday, Target Marketing suggested how marketers could create content targeting Snapchat’s 100 million daily users who view 6 billion videos:

One-Size-Fits-All Video Is Dead. YouTube should remain the home for long-form content, shorter videos need to be housed on Facebook and Instagram (she suggests 15 seconds), and Snapchat can host “ephemeral content.”

What will marketers do about this?

Please respond in the comments section below.


Heather Fletcher is senior content editor with Target Marketing.
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