Snapchat Inc. has made a complete U-turn on embracing "offline ad targeting" as the company shuns its negative attitude on the popular advertising practice.
The instant messaging company has now struck a deal with Oracle Data Cloud that marks its first ever collaboration with a third-party data aggregator.
The Oracle Data Cloud will provide a huge database on consumer spending and consumer behavior to Snapchat. The instant messaging company will in-turn use the valuable data to target ads for visiting customers.
Ad targeting based on third party data is not a new practice. Platforms like Facebook, Twitter, and Google are heavily dependent on third party data for their advertising revenues. Each of these big companies has inked a deal with the Oracle Data Cloud, previously known as Datalogix.
But for Snapchat to use offline ad targeting is a big thing, considering that its CEO Evan Spiegel had described the popular trend as "creepy."
"I got an ad this morning for something I was thinking about buying yesterday, and it's really annoying," Spiegel said at the Cannes Lions festival in 2015. "We care about not being creepy. That's something that's really important to us."
Snapchat has been extensively relying on non-personalized Snap ads for its advertising revenue.
However, Facebook and Goggle's success with "offline ad targeting" with skyrocketing advertising revenue, seems to have completely shaken off Snapchat.
Snapchat's upcoming Initial Public Offering in March seems to have also played a crucial role in pushing the company towards "targeted advertising."
Analysts say that the instant messaging company is certainly under pressure to show future "revenue prospects" to Wall Street investors ahead of its IPO. Many claim that Snapchat's IPO success will solely depend on whether company can successfully adapt itself to "offline ad targeting.'"