Snapchat reportedly eyeing multimillion dollar ad deals ahead of IPO
Snapchat's parent company is eyeing several multimillion dollar deals with advertisers ahead of its IPO, with the Wall Street Journal reporting the company is seeking spending commitments of up to $200m in some cases for 2017.
Snapchat eyes multimillion dollar ad deals ahead of IPO / Snap Inc
Snap Inc is said to be in talks with some of the world's biggest networks, including WPP, Publicis Groupe, Omnicom Group and Interpublic Group, with the aim of getting them to agree to one and multi-year deals.
Citing ad executives familiar with the matter, the WSJ has noted that the upstart is looking for agencies to promise they will spend a certain amount and that such agreements may not necessarily come in the form of biding contracts.
The multimillion charm offensive could potentially boost Snap's perception among investors ahead of its initial public offering (IPO), for which the company is currently valued at up to $25bn.
Snap has yet to acknowledge the WSJ's claims, and The Drum has reached out to the company for further comment.
Just last week WPP chief Sir Martin Sorrell told CNBC that the network had tripled the $30m it forecast to spend on the platform in 2016, handing over a total of £90m on behalf of clients.
Back in September eMarketer predicted that Snap would generate $366.69m in ad revenues for 2016, with that figure poised to be closer to $1bn by the end of 2017.
Snapchat has 150 million users worldwide, but the business has broadened its reach beyond messaging, with chief strategy officer Imran Khan recently saying it wants to be known as a "camera company."