Snapchat is set to create its first revenue model through advertisements in the messaging app, confirmed CEO Evan Spiegel. The company valued at $10 billion by investors is set to change soon with the introduction of disappearing ads.
Reports emerged in August that the company was planning to introduce advertisements soon and Spiegel announced the decision at the Vanity Fair Summit on Wednesday. The advertisement will be displayed between photo, videos and Snapchat stories feature and will not be targeted towards users. The ad platform will be useful for advertisers who promote products related to stories in the app.
“We’re cutting through a lot of new technology stuff around ads to sort of the core of it, which i think has always been telling a story that leaves people with a new feeling,” said Spiegel.
The three-year old company has been under pressure to generate revenue after the valuation and business model will be integrated into the free app. The photo-sharing app has been popular among teen users who look for privacy. Snapchat has been holding talks with several media companies that includes newspapers, magazines, television networks for a new service for disappearing ads called Snapchat discovery that will debut this year.
Snapchat COO Emily White attended the Advertising Week Conference to work on the advertisement model while Facebook’s Mike Randall will head the advertising partnerships. Spiegel has not mentioned the when the ads will be coming or about the lauch of Snapchat Discovery but will be rolled out in the coming days.
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