Snapchat is reportedly seeking to acquire ad tech and martech companies in a bid to make itself more appealing to marketers, which has led to it having talks with San Francisco-based company AdRoll.
The photo messaging app is hoping to grow its ad business and settle investor concerns with the acquisition of a company within the sector.
“They're looking for some business, or a set of businesses, that can help them demonstrate the efficacy of their ads,” a person familiar with the matter told Business Insider.
Snap Inc, the parent company of Snapchat, has struggled to convince advertisers that its ads can deliver like those on Facebook and Google and has seen its stock sink below its $17 initial public offering due to a combination of these concerns, its slow growth and competition from Facebook’s Instagram. Further compounding Snapchat’s struggles is the revelation from Digiday that many publishers are deciding to shift from Snapchat to Instagram.
The potential acquisition, which has been likened to Google buying DoubleClick in 2007, of AdRoll would go a long way to easing some of Snap’s troubles. The purchase would give Snap stronger ad targeting and campaign management, as well as eCommerce expertise. Furthermore, it will add to the acquisition of location-based analytics and ad measurement platform Placed, which Snap picked up last month.