The digital tsunami continues. Word today is that Snapchat is asking for commitments from the big agency holdcos for commitments to spend as much as $200 million on buys in 2017.
That’s advertiser money, by the way.
Why is Snap Inc. trying to get the commitments? Is Snapchat inventory so effective that it wants to make sure all agencies get their fair share? Or could it be that they want to show more committed spend in advance of the IPO to increase the value of the company? Nah, couldn’t be that.
We’ve got a teachable moment here, folks. When your agency suggests running on Snapchat (or in any media for that matter), you need to ask:
- Has your agency or the parent company committed to spending on this medium?
- What has the medium provided to the agency in the form of metrics, analysis tools, etc?
- What are the rates we’re paying?
- Can I get better rates elsewhere?
- How have other advertiser tests performed?
- Will your customers and prospects be able to use Snapchat’s crazy UI?
I’m not kidding about the last point. If you’re not a Snapchat user, before you advertise there, try to use the product. It’s maddeningly unintuitive.
Takeaway: Deals between Snap Inc. or any medium owner and your agency need to be transparent. They are not inherently in your best interest as an advertiser.