What’s Up with the Viacom-Snapchat Deal?

Viacom's investors have been watching and waiting as the company has sought better ways to tap into the profits of the digital economy. One solution could come through a new global partnership announced today with Snapchat, the popular app for sharing photos and videos that quickly disappear after they're seen.

The partnership includes advertising sales and content production that involve Viacom's Comedy Central and MTV being part of Snapchat's collection of Discover channels. Snapchat Discover debuted in January 2015, with each channel dedicated to a select group of publishers and content-producers, including CNN, People magazine, and BuzzFeed, to name a few.

Today's deal gives Viacom the right to sell Snapchat's U.S. advertising inventory, which the company is certain will appeal to television advertisers who want to tap into Snapchat's video-services premium platform. Viacom will also give Snapchat expanded access so it can produce live coverage of Viacom events.

"This is a significant deal for Snapchat, if not for revenue, then for PR and visibility," Greg Sterling, vice president of strategy and insight at the Local Search Association, told us. "It gives the company more credibility as an ad platform and will help bring new advertisers to the mobile app."

Snapchat's messaging app has been especially popular with kids, teens and the twenty-something Millennial crowd who use Snapchat to share videos and photos, with text and drawings layered on top. The messages can then be shared with a list of friends -- but the images disappear within seconds (hence the ghost logo), unless the viewer snaps a screenshot to save it on their phone.

The 2015 expansion with Snapchat Discover opened up a whole new revenue stream with plenty of potential and a well-established user base.

Good for Business?

The question now is whether Snapchat brings good business value to the table. Viacom obviously believes so and is...

Comments are closed.

What’s Up with the Viacom-Snapchat Deal?

Viacom's investors have been watching and waiting as the company has sought better ways to tap into the profits of the digital economy. One solution could come through a new global partnership announced today with Snapchat, the popular app for sharing photos and videos that quickly disappear after they're seen.

The partnership includes advertising sales and content production that involve Viacom's Comedy Central and MTV being part of Snapchat's collection of Discover channels. Snapchat Discover debuted in January 2015, with each channel dedicated to a select group of publishers and content-producers, including CNN, People magazine, and BuzzFeed, to name a few.

Today's deal gives Viacom the right to sell Snapchat's U.S. advertising inventory, which the company is certain will appeal to television advertisers who want to tap into Snapchat's video-services premium platform. Viacom will also give Snapchat expanded access so it can produce live coverage of Viacom events.

"This is a significant deal for Snapchat, if not for revenue, then for PR and visibility," Greg Sterling, vice president of strategy and insight at the Local Search Association, told us. "It gives the company more credibility as an ad platform and will help bring new advertisers to the mobile app."

Snapchat's messaging app has been especially popular with kids, teens and the twenty-something Millennial crowd who use Snapchat to share videos and photos, with text and drawings layered on top. The messages can then be shared with a list of friends -- but the images disappear within seconds (hence the ghost logo), unless the viewer snaps a screenshot to save it on their phone.

The 2015 expansion with Snapchat Discover opened up a whole new revenue stream with plenty of potential and a well-established user base.

Good for Business?

The question now is whether Snapchat brings good business value to the table. Viacom obviously believes so and is...

Comments are closed.