Advertisers that typically produce ads that are in traditional formats now appear to be taking up Snapchat’s style of advertising which is in a vertical orientation.
A self-service “Snap Publisher” tool was launched in July by the app’s parent company Snap Inc. The feature allows advertisers to cut vertical ads in less than 2 minutes, the aim of this being to attract more advertisers to use the service.
Analyst Stephen Ju noted, “As most of the large brand advertisers are already sitting on horizontally-formatted creatives, taking the friction down in porting the ad content into a vertical format vs. creating a new ad should bolster the incentive to test the platform,”.
The price target for Snap was raised by The Swiss bank before earnings to $20 from $17, which it hasn’t been at since June. According to Bloomberg data, it is also above Wall Street’s consensus of $15.
Ju also stated that although it has taken some time Snap is taking the necessary steps to rectify ad budget allocations.
Credit Suisse predicted that the cost per 1000 clicks reduced to $2.35 during the second quarter of 2017, however it has started to rebound.
Source: Markets Insider
