Snap Inc has acquired advertising start-up company Metamarkets in a move that could boost the Snapchat app maker’s advertising business. Metamarkets offers programmatic advertising tools including performance measurement features.
The deal is not yet official. Instead, sources told TechCrunch that they had received a stock alert about the acquisition, and that the transaction was below $100 million.
Current clients of the start-up include Twitter and Oath.
The source also revealed that Metamarkets was already profitable. In addition, there had previously been rumours that the start-up may be on a shortlist of potential companies Snap Inc was looking to acquire.
The deal would come at an interesting time for Snap – just ahead of revealing its financial results this week.
It’s evident that Snap is in desperate need of revising its advertising. The company has been busy expanding its ad network and revenues stood at $181 million last quarter.
In terms of hitting analyst projections, Snap hasn’t done well. Indeed, eMarketer recently revised its forecasts for the firm’s advertising revenues down from $1 billion to $774 million for 2017.
Ultimately, if the company can offer better ad targeting and measurement tools, it could potentially attract a larger number of advertisers. If the deal is confirmed, that is likely where Metamarkets could come in.