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A Thought on Snap's New Unskippable Ads

When Triton published its Snap IPO Dossier in March 2017 ahead of the IPO, Snap was marred by very low scores for Operational Transparency and Business Model Confidence, two key components of Triton's proprietary Triton Scores in the IPO Dossiers.


A major concern at the time was extremely poor disclosure regarding its core product, specifically the viewing behavior of users consuming Snap Ads on the company's platform. Snap has famously allowed users to skip through their ads at any time, but spent no time in the S-1 discussing how often users were doing so, or providing any other metrics on ad engagement or any of the direct response metrics that make online advertising appealing to advertisers.


Today's news that Snap was rolling out unskippable video ads (first for the upcoming movie Deadpool 2), suggests that those concerns at the IPO may have been well founded; If users were engaging with the ads as desired, there would have been no push by advertisers for these new ad units.


In a hyper-competitive environment for online ad budget, Snap's core ad products don't seem to be stacking stacking up, especially as Facebook and Google's comparable products become increasingly integrated into user generated content, all while offering better user tracking and reporting to advertisers.


And the signs were all there to investors as soon as Snap filed their shallow S-1.


More on AdAge - HERE





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