Snapchat, typical case for startup struggles in commercialization (st)

Original link from Business Insider.

It takes time to build a sales organization that can meet the needs of all the world’s biggest advertisers. One of our advertising agency sources said someone internally at Snapchat had admitted to them that “they don’t know where they are yet as a sales organization.”

 

McDonald’s geo-filter Snapchat campaign.

That agency source, who is director-level at an agency in the US, said: “When they speak to us, it feels very ad-hoc. We wanted to do something with them [for a major brand] that would make headlines — like McDonald’s did with its geofilters [campaign in June] — but they were not equipped to do that and respond to our pitch and think of ideas. It seems to me like the McDonald’s geo-filter came from the brand and agency, who asked them: ‘Can you do this?’ And the sales side says: ‘Yes, we can, if it’s not too hard for us to do.’ It feels like they’re saying [to other pitches]: ‘We don’t have time to do that now.’”

Meanwhile, many of the director-level agency sources we spoke to outside of the US said they had only had initial meetings with Snapchat — and many had received no contact at all.

A director-level marketer at a major consumer brand in the US said Snapchat was only “gingerly” talking to his company. He added that while he saw the value of the app as a platform to reach younger consumers, he had yet to be convinced that any of the paid-for Snapchat ads from other brands had been successful.

The lack of hard numbers or case studies was a recurrent theme in our conversations with advertisers and agency execs. Marketers love numbers. They need to be able to prove to their chief financial officers that the $750,000 they plan to splash out on Snapchat is likely to generate a return for the business.

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