Rocket Fuel named as Snapchat partner
Rocket Fuel is relying on platform revenues, plus advertiser demand for Snapchat inventory to augment its revenue stream with the video sharing app naming it as a demand partner. This comes a day after it reported revenues of $90.7m for the second quarter.
Membership of the program means advertisers can also use Rocket Fuel to measure how their Snapchat ad units perform
The adtech outfit, which is currently under offer from Sizmek, has today (August 10) been named a Snapchat Certified Partner, meaning media buyers can use the platform to buy inventory on the popular video-sharing app including customized filters, long-form video formats, plus app install units.
Membership of the program means advertisers can also use Rocket Fuel to measure how their Snapchat ad units perform in addition to its existing array of connected TV, in-stream plus outstream video, as well as full episode player units.
Randy Wootton, Rocket Fuel chief executive, said the Snapchat integration, which augments its available audience by 166 million daily users, would allow it to “provide brand marketers with the most well-rounded video solution," in addition to its AI platform that evaluates media opportunities for advertisers in terms of connecting them to their desired audience.
“We’re excited to integrate Snapchat into our predictive marketing platform, allowing Rocket Fuel brands to leverage its highly engaged audience, unique ad formats and measurement,” he added.
The Snapchat offering is available to Rocket Fuel customers in the US and UK initially, with the announcement coming the day after it revealed revenues fell 22% year-over-year to hit $90.7m in the second quarter, with revenues from its North American and international operations down 25% and 14% respectively.
This resulted in a $18.2m loss for the quarter, although Rocket Fuel’s leadership were, as they have been in previous quarterly filings, keen to trumpet its reduced reliance on media services – a seasonal revenue stream that’s now unattractive to investors – instead highlighting that its “platform solutions”, or Saas revenues, “grew significantly” representing 38% of its total earnings for the quarter.
It’s precisely this capability, enabled by its AI offering, that prompted Sizmek to bid $145m to take ownership of Rocket Fuel, with the company free to solicit third party alternative acquisition proposals until later this month.
Needham & Company, LLC is serving as financial advisor to Rocket Fuel, with Wilson Sonsini Goodrich & Rosati, Professional Corporation is acting as Rocket Fuel’s legal advisor. Kirkland & Ellis LLP is acting as Sizmek’s legal advisor.