Snap’s Current Hype Machine Could Hurt It Post-IPO

Buzzfeed:

…Snap has been unable to break out of the “experimental” portion of many advertisers’ budgets, according to the agency executive. These budgets, the agency executive said, get portioned out based on a 70–20–10 rule: 70% of advertiser budgets is spent inside platforms that are tried and true, 20% is spent with platforms that are still emerging, and 10% in spent in the next/innovation bucket. “I would bet that most still put Snapchat in that 10%,” the agency executive said. “For us, Facebook is in that 70% and Snapchat is nowhere near that.

Snapchat, by many accounts, is the most innovative company in tech right now. That may not matter if they cannot develop a business model.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s