Snap Inc (SNAP)

[CarloRoberts]

Snap hasn’t been shy about its need to increase its pool of advertisers. The company sells almost all of its vertical video ads through a process called programmatic ad buying — in other words, automated software programs that auction off ad spots to the highest bidder. The problem for Snap thus far has been that many of its auctions don’t have much competition, meaning that there aren’t enough advertisers bidding for the ads, and those that are using the service are getting the ads on the cheap, since few other advertisers (or no other advertisers) are bidding against them.


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