Selling digital advertising has been a profitable venture for companies like Facebook, Google, and Twitter. Snapchat is now trying to cash in on the digital advertising cash cow as well. Soon, Snapchat will be using purchasing data provided by Datalogix, which is owned by Oracle Data cloud, to measure and target ads towards it users.
Regardless of where brands are buying their advertising from, if directly from Snapchat or from one of the third party options that utilize the Ad API of Snapchat, users purchase data will be available for all ad formats that are found on Snapchat.
By using Oracle Data Clould’s syndicated audience groups, which consists of approximately 100 different generic segmented categories, offline and online purchase information is separated into the general categories. Snapchat is then uses its own “hashing” process, which will match up the Snapchat accounts with the generic information from the segmented categories, by using email account information, along with unique advertising specific identifiers that Snapchat has associated with individual accounts.
Encryption and anonymity will remain with all data between the two companies, to ensure that neither Snapchat nor Oracle will be able to see specifically how individual users data ties to the other companies data.
If a Snapchat user is concerned about having advertising activity information gathered outside of Snapchat, there is an option in the App settings where they can choose to opt out.
The benefit of using this type of data is that it will allow a more precise way of applying advertising, as it will make it possible to focus ads on users that are likely to purchase the product, rather than focusing on a metric such as age, gender, or geographical location. In addition, this will give Snapchat the ability to measure whether the ads on its platform resulted in actual sales or not.
This is just another step by Snapchat to remain relevant in the game where such big players have already implemented these tools. And with Snapchat likely going public sometime in the near future, steps like this will only add value to the company.