Snapchat said to be talking to advertisers as it searches for revenue
The messaging app could soon offer a service for paid videos, news articles, and other items, according to a report from The Wall Street Journal.
Snapchat made its name by offering a service for messages that disappear after they're read. Now it wants to help advertisers leave a lasting impression.
The startup, which famously turned down a $3 billion acquisition offer from Facebook last year, has been discussing a new service called "Snapchat Discovery," according to a report by The Wall Street Journal on Tuesday. The service would allow media companies and other advertisers a way to display ads to Snapchat's users, the report says, citing unnamed sources. The service is said to launch in November, according to the report.
So far, Snapchat has talked with at least a dozen media companies, the WSJ said.
A Snapchat spokeswoman declined to comment.
However this effort plays out, it is a signal that Snapchat is arriving at a new stage of growth: Revenue. Snapchat rose to stardom by offering what's called "ephemeral messages," or missives that disappear shortly after they're viewed. But so far it hasn't shown how it will turn that popularity into a sustainable business.
According to a slide presentation the WSJ said was shown at some meetings, more than half of the app's users are between the ages of 13 and 17. ComScore, an industry researcher, said earlier this month that Snapchat was the third-most popular social media app among people between the ages of 18 and 34. The first- and second-most popular apps? Facebook and Instagram.
Some advertisers have already begun using Snapchat, though a service called "Snapchat Stories," which connects multiple messages together and can be broadcast to large groups of users. But, like brand pages on Facebook, Snapchat's advertising service will likely help advertisers reach users that aren't actively seeking them out.