Snapchat needs advertisers to support its hefty valuation. But, Facebook and Google are tough competitors. So, to lure in advertisers, Snapchat has improved the way advertising platform works, TechCrunch reports. The social media company has come up with new Snap Publisher tool, self-serve Ad Manager, and Snapchat Certified Partners program.
With Snap Publisher, advertisers won’t need to use expensive software to create campaigns in vertical video format. As of July, Snapchat will provide a publishing tool that turns horizontal videos into vertical ones, offers templates, adds motion to pictures, and does other useful things.
The Ad Manager is a self-service system that allows advertisers to purchase, manage, and optimize their ads, as well as see analytics. Advertisers will now be able to pay for ads with credit cards instead of lines of credit, and there will be no minimums. With Mobile Dashboards, it will become possible to track and manage campaigns on the go.
The company is also launching Snapchat Certified Partners program. They will select top tech partners and give them tools to optimize ads. These partners will also be favored when clients are referred.
In the first quarter of this year, Snapchat had a huge loss of $2.2 billion on a rather small revenue of $150 million. Snapchat needs to get its business going as its stock has fallen to $18 from a recent high of nearly $30. It seems many investors aren’t happy.
The company’s market capitalization is over $20 billion, making many analysts and investors question such high value.
To win business, Snapchat is trying hard, but can they make it and justify this valuation? Facebook is already entering Snap’s turf with the “Stories” format. As a result, Snapchat’s user growth has slowed.