Can Snapchat Beat the Mobile Ad Game?

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Aug. 29 (Bloomberg) -- Altimeter Group Media Analyst Rebecca Lieb discusses Snapchat poised to debut advertising content and messaging app valuations. She speaks with Tom Keene, Scarlet Fu and Brendan Greeley on “Bloomberg Surveillance.” (Source: Bloomberg)

We now discuss what snap chat is doing.

This goes beyond just advertising.

This is a media strategy that snap chat is working on here.

What were you concerned about as you bhear the plans unfolding?

Indeed, and best practices are still being established in this form fox lawyer.

Those that appear on your telephone, and when you release your finger from the screen, they go away, never to be seen again.

We know that snapshot is in talks with major publishers about delivering news through this system.

I believe it's a way of giving snap chat's younger demographic a taste of major media in the hopes that they will probably become subscribers to the daily mail as the only brand that we know is in talks with them.

It's probably all of the usual suspects, all of the major publishers.

They have plenty of other options.

Wouldn't this just get in the way and they could go off to another platform?

It remains to be seen, but social media platforms right now are the primary way in which young audiences are consuming news.

If you look at all of the major news sites, their traffic is increasingly, and in some cases, overwhelmingly coming through social media, not through direct traffic.

What can an app like snap chat learn from we chat or whatsapp in terms of raising revenue?

It's all up for grabs right now.

We've seen an incredible increase in mobile revenue and mobile advertising, on facebook and twitter in the last quarter.

Just like 15 years ago with digital advertising, with search engines, with web sites, the best practices were still being established, just like when they invented television, they didn't invent the 30-minute sitcom a day later.

We're still in the woods about mobile advertising is going to ultimately look like.

I'm thinking about advertising on social.

There's a 10-year curve.

Something gets cool, it gains users, it starts advertising.

It gets uncool, users move on.

We saw this with friendster, my space, starting to see it with facebook.

What hope do we have the innovation with snap chat will break this cycle?

How can we think this is not going make it uncool?

What's different this time?

There are always going to be these cycles.

News cycles work so quickly on digital channels.

So people were asking, when facebook went public, is it going to be the new google or my space?

It was something very ephemeral, something that soars and then absolutely crashes and burns.

The question is developing a value proposition and a system to really hold on to your users.

Facebook, for example, does not let you take your little black book all of your friends with you when you leave the platform.

That is a very, very tight tight anchor.

We'll see what senate chat can do to keep rebuilding its brand.

Is it too late to turn the clock back?

I think anything is game right now, although a subscription fee for something like snap chat is highly questionable.

If you subscribe to, you get to keep articles, archive them.

Snap chat right now is all about now you see it, now you don't. it's hard to imagine monetizing that precise model with anything but advertising.

All right, it bocksd itself into a corner.

Thank you so much, rebecca joining us from alta media group.

There's a social site called

This text has been automatically generated. It may not be 100% accurate.


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