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Snap's ad tool could attract small businesses (SNAP)

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Mobile Video Ad Spending

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Snap released Snap Publisher, its browser-based ad tool that helps advertisers create campaigns for Snap’s vertical video format, Business Insider reports. The tool was announced earlier in June, and adds a layer of creative and tech tools for advertisers.

It could be attractive to small and midsize businesses (SMBs) that don’t have the time, expertise, or resources to cater ads for Snap’s vertical video format. This is because Snap Publisher helps edit and resize videos for mobile screens and will help minimize the time required to make video ads on Snap.

Snap has historically focused on attracting big advertisers. Previously, Snap has catered to big brands who run large ad campaigns that sometimes cost hundreds of thousands of dollars. Snap Publisher could be a more inexpensive way for SMBs to advertise on Snap — as they won’t necessarily need to hire specialized talent or use special software to create vertical video — that could lure smaller businesses into Snap’s ad ecosystem.

But the company has recently made pushes to develop technology that could cater to smaller businesses and brands:

  • It released Ad Manager, its self service platform, in June. With no required minimum ad spend, the tool could also appeal to smaller businesses.
  • Snap has made a push in developing its location technology, by acquiring user location technology company Zenly, and partnering with data location technology companies Factual and Foursquare. Having this breadth of location data could also appeal to smaller businesses who are looking to run location specific ad campaigns. Local advertising is important for SMBs, as they may not necessarily want to run a nationwide ad campaign, if they are a regional business.

Regardless, Snap faces competition from Facebook in catering to small businesses. Facebook offers a mobile design studio targeted at smaller businesses, and also recently made updates to its Page interaction analytics, which may be attractive to SMBs that don’t want to invest in a standalone mobile page. Given the fact that Facebook also aims to simplify the ad buying process for SMBs, Snap may face an uphill battle.

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