Facebook (NASDAQ FB) Stock Update: Snapchat to Start Selling Ads

In an important news for the Facebook (NASDAQ FB) Stock, Snapchat, Inc. plans to launch its Snapchat Discovery service by November of this year. The service will enable advertising and media companies to promote their products by sharing disappearing ads, news content, videos, and articles with Snapchat users.

Snapchat plans to launch Snapchat Discovery, a service that will send news content and promote ads amongst users by sending attractive ‘snaps’. The photo-sharing startup is in a discussion with several media companies, including newspapers, magazines, and television networks, to provide content for the upcoming service.

The service will allow users to read daily editions of publications, and watch video clips of TV shows or movies by pressing their finger on the screen, as they do to share photos and messages on the app before disappearing. According to The Wall Street Journal, British news website MailOnline is a company that might be chosen to share its news articles on the app.

Facebook Inc: Snapchat to Evolve

The exciting and differentiating feature that the company has incorporated in its app is that the shared content disappears within 10 seconds of being displayed. This timed feature will allow companies to share informative, attractive, and erasable content with users that may include a preview of their product or any promotional offer.

The Snapchat app is currently used by companies such as Volkswagen’s (VLKAY) Audi, Yum! Brands’s (YUM) Taco Bell, and GrubHub Inc (GRUB) to market their products. Audi’s Snapchat campaign was a huge success as it got more than 10,000 followers, 100,000 views, and 2,400 hashtag mentions on Twitter Inc (TWTR) within three days of launch.

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Facebook Inc (NASDAQ FB) Business News

Snapchat has not yet tasted its share of money. The new service is expected to generate revenue for the three-year-old startup by charging companies for promoting their content on the Snap Discovery forum. Similar steps to boost revenues have been taken by other social media platforms; Twitter has “Promoted Tweets” and Facebook incorporated ads on its website and mobile app a while ago.

Furthermore, Snapchat turned down a $3 billion acquisition offer by Facebook last year and a $4 billion buyout bid by Google Inc (GOOG). Last month, the company held discussions with Alibaba.com Ltd. (ALBIY) for an investment in Snapchat at a valuation of more than $10 billion. However, the discussions failed to materialize.

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