Snap Inc. isn’t profitable yet, but it will need to double down on a monetization plan after it goes public next month. One logical path is an ad-selling strategy that resembles the TV industry, according a new research note from analyst Michael Nathanson. Given Snapchat’s notably young user base, that’s bad news for incumbent media companies aimed at young audiences—specifically Viacom, whose key brands include MTV. As Nathanson explains, there is only so much ad spend to go around: “If Snap can win traditional TV dollars, budget will most likely come from those with the greatest exposure to the 12-24 demographic,” he writes.
Unless we needed more proof, Snap already snapped up Viacom’s Jeff Lucas as its global head of sales. “[I]t would seem logical that Lucas will target the brand advertisers and categories that are endemic to Viacom’s networks,” Nathanson writes.
[Photo: Snapchat] CZ