Viacom missed revenue estimates during their Q1 earnings report yesterday but unveiled some positive news in the process. The ad deal that Snapchat and Viacom have inked will be extended, Viacom will add more channels to Snapchat Discover and Viacom will now be able to sell Snapchat’s US-owned and operated ad inventory.
Previously, Viacom had an ad and content deal that included both Comedy Central and MTV content on the Snapchat “Discover” page. According to Reuters, Viacom will now be able to sell ads on content that includes Snapchat-created Discover content and “Live Stories,” the curated user posts on a topic/event/location. Viacom is the only TV company that currently has this arrangement with Snapchat.
This comes on the heels of ad API rumors. Instead of lacking ads or completing a full-on ad system, this could be a happy medium to help the network monetize in the short therm. The deal makes fiscal sense, as it gives Snapchat instant access to bigger brands and a seasoned team with long-standing relationships and gives Viacom extra inventory. During the earnings call, Jeff Lucas, Viacom’s ad sales chief, stated:
“We identified early on the similarities in our audience with Snapchat as they were starting out. They realized early on about our access to the ad market in terms of selling against millennials”
From afar, this looks like a great deal for both companies, but time will tell how advertisers and audiences react.
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