What could advertisers gain if Yahoo invests in Snapchat?

Yahoo could snap up a share of the youth market with an investment in Snapchat.
Yahoo could snap up a share of the youth market with an investment in Snapchat.

When the messaging platform folds in advertising, Yahoo could get a piece of 100 million young users

Even though it’s yet to earn a dime in revenue, Snapchat may loom large in Yahoo’s efforts to make itself relevant to the advertising market.

Yahoo is reportedly in talks to invest millions of dollars in the time-restricted photo messaging app that’s taken the youth market by storm. That will let Yahoo get in on the ground floor of Snapchat’s rumored plans to fold ads into its streams.

So what does this collusion mean for advertisers?

According to one study, an astonishing 77 percent of college students use SnapChat daily. Combine that with the fact that most of Snapchat’s 100 million users are between 13 and 25, and you have the go-to app for any company that wants to reach Millennials and teenagers.

Given these numbers, it should be no surprise that fast food chains are among the app’s early adopters.

McDonald’s entered the fray, snapping photos of star athletes like Lebron James and Johnny Manziel as well as using the app to disseminate special offers and contests. Taco Bell promoted its Spicy Chicken Cool Ranch DLT by producing a Snapchat movie. GE, the NBA and Acura represent some of the other heavy hitters making an effort to capitalize on Snapchat.

Snapchat will reportedly start snapping paid advertisements and other media through a service called Snapchat Discovery as early as November of this year. Whatever Snapchat has coming down the pike, it’s clear that it’s still in its nascent stage as far as advertising goes.

Yahoo’s investment in Snapchat would complement Yahoo CEO Marissa Mayer’s desire to diversify content in search of ad revenues.  Granted, the company has yet to generate any ad revenues, but its ability to support video does fit into Mayer’s philosophy about the future of brand storytelling.

Subscribe today for just $116 a year

Get the very latest news and insight from Campaign with unrestricted access to campaignlive.com , plus get exclusive discounts to Campaign events

Become a subscriber


Don’t miss your daily fix of breaking news, latest work, advice and commentary.

register free