Snap is starting to beef up its roster.
The parent company of Snapchat, in an effort to strengthen its company as it prepares to report its quarterly earnings next week, has reportedly acquired Metamarkets, a startup advertising company that offers programmatic advert data-related services to online marketers to provide them with a measurement on how their campaigns are performing.
Both parties have yet to respond to requests for comment but reports say that there was a stock alert about the transaction that made note of the arrangement and planned merger that happened on Oct. 24. Another report says that acquisition is close to the deal and that the acquisition is for under $100 million.
Back in 2016, there were several reports that Snap was out looking for an ad tech company to bolster is advertising arm to automate ad buying on their platform. Recode named the company as Metamarkets and it seems like the deal took almost two years to close.
Snap's purchase of the tech startup brings a couple of interesting points. For one, it has become obvious that Snap is putting a considerable effort into building an advertising side to its business. The company had a total of $181.6 million which came from advertising and was missing projections by analysts.
Another point is that in the world where Facebook and Google dominate online ads, Snap will be venturing into some titan territory. Even with Metamarkets' efficiency in data crunching, a network of clients and profitability, it still needed a social media giant to make use of all of its awesome services.
Metamarkets' acquisition shows the disparity among different companies today. At the same time, it also provides a small light of hope for those trying to find ways to get an equal footing and level the playing field. If data is where the big buck is, then providing efficient data consolidation services could be the way for companies to grow.
