Snapchat may require users to sit through its ads (SNAP)

pulse

January 3, 2018 4:22 PM

Snapchat is considering forcing its users to view ads on its platform for three seconds before offering them a skip option

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Snapchat is considering forcing its users to view ads on its platform for three seconds before offering them a skip option, according to Ad Age. This type of ad format would be similar to YouTube's TrueView ads, which users can skip after five seconds.

While it's too early to tell if Snapchat will enforce the requirement, it's not a surprise that it's under consideration. Nearly all of Snapchat’s revenue is generated from advertising, and the company has missed revenue expectations in every quarter since going public in March of last year. A lack of tools to track ad performance, compared with those of mature ad platforms like Facebook, and slowing user growth, especially relative toInstagram Stories, may be contributing to waning interest among advertisers.

Imposing an ad viewing time requirement could lead to better ad viewability rates for Snapchat's ads, which could help the company entice new advertisers. A survey by customer acquisition firm Fluent in February 2017 found that 69% of US adults “always” or “often” skip Snapchat ads, per Digiday. Additionally, Snapchat’s young users often skip commercials in less than a second, according to Ad Age. Imposing an ad viewing time requirement will increase the likelihood that Snapchat users will be exposed to ads on the platform, which could be a selling point for new ad clients.

But if the new ads are approved, Snapchat risks turning some users away. Snapchat,along with its CEO Evan Spiegel, has historically shied away from hosting intrusive ad experiences, and a new ad viewing requirement could cause users to use other apps, which host ad-skippable experiences like Instagram Stories, more often. This wouldn't be helpful to Snapchat’s existing struggles with user growth, but potential ad revenue benefits outweigh sacrifices in user experience.

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