Privately-owned Snapchat
In the deal, Viacom will use its existing ad sales team to sell ad spots on Snapchat's native "Discover" content as well as the Viacom-owned Snapchat channels. The app features new curated "stories" each day that focus on specific locales across the globe or major festivities-most recently Mardi Gras in New Orleans or the Grammy Awards. Viacom will aim to sell advertisements that users see between the content, so big ad buyers like General Motors
The partnership with Viacom seems logical considering that, despite 7 billion video views each day, Snapchat has no in-house ad sales team. Since Viacom owns many cable channels, its ability to attract high profile advertisers is proven and will allow Snapchat spots to be packaged with larger ad buys on traditional cable channels. Additionally, Viacom will not only sell spots for its own Snapchat stories-MTV and Comedy Central both have U.S. and international channels on the app-but also for Snapchat's original content. The deal does not extend to advertising for other media companies' Snapchat content, but the partnership gives Snapchat exclusive social media access to Viacom-sponsored events like MTV's popular award shows.
Though Snapchat will share ad sale revenue with Viacom in the current deal, many see the move as the final push for the app to become mainstream as opposed to its current niche status. In 2007, Facebook
Additionally, in 2015Snapchat raised over $500 million in a round of funding which valued the startup at $16 billion. With its push for original content, curated stories, and additional features, the partnership with Viacom could signal its move towards the mainstream in attracting a more adult audience. For Viacom, the move could incentivize young viewers to move back to the television with Snapchat original content that complements traditional television programming.
Both companies stand to gain from this agreement, especially as each holds something the other doesn't. For Snapchat, they have captive youth audiences that Viacom is struggling to retain in today's evolving media world. And for Viacom, they have an established sales arm that can finally bring big-ticket advertisers to what is (for now) considered a niche social media application.