The company announced that it will pump $100 million into producing content exclusively for Snapchat. Though investors may be shying away from the Snap Inc.’s stock after initial excitement surrounding its IPO, Time Warner’s move signals that content companies are still bullish.
Users can expect to see scripted series—including dramas and comedies—plus documentaries and advertising from Time Warner-owned companies like HBO, Turner and Warner Bros.
Time Warner currently produces about one new 3-5-minute show per day. The deal increase the company’s content to three shows per day shot in vertical format. As part of the deal, Snap will reportedly pocket 50 percent of the ad revenue.
Marketers should take this as a signal that at least the big players see Snapchat as a long-term platform to reach millennial audiences.
As this deal starts to unfold and content is produced, marketers can look to Time Warner to understand what type of content is being produced for the platform, as it will probably be state-of-the-art. That’s because Snap, which stock has struggled since the company’s well-publicized IPO, must be committed to Time Warner’s content working.
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Investors will look to the deal as a litmus test to see whether the platform can survive as a content consumption mechanism, as well.
Some would argue that Snap has proven the power of content on its app already, but the proof is in the revenue. Without more major ad and content contracts from organizations such as Time Warner, it will be tough for Snap to thrive while its biggest competitor, Facebook, keeps swiping its photo-sharing innovation.
Marketers have a couple of potential plays with Snapchat: traditional advertising (sponsoring a piece of content) or creating original content.
With a few exceptions, brand managers haven’t found widespread success with either the way they have on platforms such as Facebook and Instagram. Most B2B marketers barely touch Snapchat, perhaps because its users are largely looking to be entertained.
What do you think, PR Daily readers? How does Time Warner’s deal change your perceptions of Snapchat as a marketing venue moving forward?
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