Snap Partners With Advertising Company to Boost Revenue
The social platform partners with ad-tech company Perion’s creative ad division in attempt to boost ad revenue
Undertone, the creative advertising division of Perion Network Ltd., has been named Snapchat Creative Partner, the company announced Tuesday. Perion did not disclose the terms of the deal.
Founded in 1999, Perion is an Israel-based ad-tech company providing engagement and monetization solutions for web and mobile. In entering a partnership with Snapchat, Perion is meant to help the social platform translate its large user base, approximately 173 million, into ad revenue.
|Doron Gerstel, Perion’s CEO|
Snapchat is in the midst of a challenging year after its parent company, Snap Inc., flopped its March IPO. In July, the Snap Inc. stock fell below its $17 IPO price, set on March 1, and was downgraded by Morgan Stanley.
On Monday, New York-based market research company eMarketer lowered Snapchat’s ad revenue forecast for 2017 to a total $774.1 million, citing slower-than-expected user growth among other reasons. This is following eMarketer’s March prediction that Snapchat’s worldwide ad revenues would reach $900 million in 2017.
“For the last 16 years, Undertone has been helping the world’s most recognizable brands deliver engaging digital ad experiences to drive business results,” said Doron Gerstel, Perion’s CEO.
“This partnership underlines our commitment to cross-platform creativity and helping brands connect with consumers however they consume content,” said Mike Pallad, President of Undertone. “With 173 million daily users around the world, Snapchat represents an important avenue for brands.”