Snapchat parent company Snap is in discussions with the media arms of large advertising companies such as WPP, Omnicom, Interpublic Group and Calif. before it launches its initial public offering. The company is hoping to secure ad spend commitments of $100m to $200m for this year from each advertising firm, about double or triple the amount the firms have spent in the past year. The agreements are unlikely to be binding contracts, but will secure Snap’s immediate future as it pitches to public investors with a valuation that could reach $25bn. Advertising researchers eMarketer puts Snapchat’s 2016 ad revenue at $367m.
Snapchat parent company Snap is in discussions with the media arms of large advertising companies such as WPP, Omnicom, Interpublic Group and Publicis before it launches its initial public offering. The company is hoping to secure ad spend commitments of $100m to $200m for this year from each advertising firm, about double or triple the amount the firms have spent in the past year. The agreements are unlikely to be binding contracts, but will secure Snap’s immediate future as it pitches to public investors with a valuation that could reach $25bn. Advertising researchers eMarketer puts Snapchat’s 2016 ad revenue at $367m.