Just when we thought that the availability of the ‘Stories’ feature on various other social media platforms would break down the market of Snap Inc., the company has been actively working on getting back its monopoly in the market. Even though Mark Zuckerberg is using the Stories feature to subdue Snap’s popularity, Snap is determined to come up with something even more innovative. For this, it has been acquiring a number of different tech startups. It seems that the company aims to put all the talent together and introduce a completely unique concept to the social media world. Apparently, Snap acquires Placed for the very same reason.
The sole reason why Snap Inc. shot to fame was that people came across something novel like the Stories and found it appealing. Confident of its success, Snap went a step further and ventured in hardware. It recently came up with the video capturing device Snap Spectacles. As soon as other social media portals were threatened by its popularity, they also adapted the same. This reduced the market value of Snap and drastically affected its popularity in a negative manner. This forced the company to take severe measures to regain its position. A few weeks ago, Snap acquired a small drone startup and has now declared the acquisition of Placed as well.
Snap acquires Placed to understand ad marketing
One always wonders that how these social media platforms make money as their subscription is free of cost. Well, all the finance for such companies comes through advertisements. The wider the reach of a social media portal, the higher the money gained through advertisements. Placed will work to show how theses advertisements are benefitting the companies that have invested money in them. The main service of this company is to track things such as offline purchases and store visits.
Known as a marketing campaign tracking company, Snap acquires Placed in order to get an idea about the effects of its advertisements. For example, last August Placed closely studied the habits of two million Snap users. Through this, it could attain information regarding the preferences and choices of users in terms of their gender, age, and ethnicity. The main agenda behind this acquisition is to improve the reach of Snap’s in-store ad campaigns. Despite the acquisition, Placed will work independently. It consists of more than a hundred employees at various offices in New York, Los Angeles, and Seattle.