Commentary

Snapchat Hopes Trad TV Becomes Permanent Partnership

The big new shiny thing that is Snapchat has -- for some time -- caught the fancy of traditional TV executives in the hopes of securing their future. Now investors have caught on. But will it have staying power?

Like many digital media darlings, Snap’s core audience are 13-34 -- pretty similar to an MTV. Those young consumers are using Snapchat every day, spending much time on the social media/camera service -- some 160 million of them.

No, it isn’t Facebook yet — and hopefully no Twitter.  But investors are hedging their bets. It’s been awhile since the industry had mulled the idea of the next great media thing.

NBC is taking no chances, investing $500 million -- this after starting up a partnership -- including plenty of marketing and content elements.

The biggest traditional TV franchise, the NFL, believes Snapchat is key for the future -- considering how some major TV-based sports/entertainment franchises continuing to age-up. Not always a good sign for major consumer product and other big marketers.

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Last year, the NFL posted videos from select games to the “live stories” area in Snapchat.

Snapchat pulled in 42 million unique viewers for the NFL from that marketing partnerships last year -- up from 35 million in 2015.

To be sure, those 42 million are not the traditional 42 million average minute TV viewers. Nowhere near it. But that said, who wouldn’t want to get access to younger consumers?

Other traditional TV companies beside NBC are producing content, including Discovery Communications and A+E Networks.

Something more traditional is now on Snapchat side -- one Jeff Lucas, now VP/head of global advertising sales. Yes, that Jeff Lucas, who worked at Viacom, home of MTV. The goal for Snapchat, of course: Lots more advertising revenue.

Estimates were that Snapchat pulled in around $350 million in 2016 in advertising revenue -- going to over $800 million in 2017.

After just a few days of Snapchat’s parent Snap Inc. IPO, the only truth is that, there will be ups and downs. After days of soaring stock price, Snap Inc., up 60% rise over its IPO, the company came back down to reality -- a bit.  Down over 12% on Monday to $23.77.

Maybe this was expected. But remember this: Snapchat initial exposure to consumers (and to TV business executives) was that one’s text messages/or video would be deleted after you read/seen them — though it seems that isn’t completely true.

Still... a metaphor? Maybe not. Things come and go and come again. Until the next shiny media thing comes along.

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