It looks like Snapchat is in the process of entering the advertising technology market, or at least, that’s what a report from Digiday is claiming. According to the report, Snapchat is currently in discussions with a number of advertising agencies and advertising technology companies about opening up its own API, which would be a massive boost to its advertisement selling business. Nothing in the report has been confirmed by Snapchat itself, but this move makes a lot of sense. At the moment, companies looking to advertise through Snapchat have to work directly with its sales people, but and API would allow them to simply buy the advertisements themselves.
Snapchat is working on a crucial part of its growing digital ad business: an application programming interface (API) that would let partners start buying ads with more precision and frequency, according to multiple sources. The messaging platform reached out to ad technology companies and agencies about its API, asking them what they would need from such software, sources said. The conversations with potential partners are laying the groundwork for a system that would be ready for testing by as early as the spring. “Snapchat’s ambition going into 2016 is to have many more opportunities for e-commerce on the platform and other stuff that is more about building audiences,” said an ad agency executive with direct knowledge of the plans. Opening up an API is a crucial step for Snapchat, following the lead of platforms like Facebook, Instagram, Twitter and others. It allows for more types of ads, including those with calls to action for consumers, such as installing apps or buying products. These direct-response formats are considered essential for any mobile ad business that wants to cater to a broad base of marketers.
