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SNAP Partners With Unity on in-Game Ads, Game Development

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Snap (SNAP - Free Report) recently announced its partnership with cross-platform game engine Unity Software (U - Free Report) that will extend the reach of Unity’s Ad supply to Snapchat advertisers. This will also bring Snap’s technology to game developers through Snap Kit tools.

Available today in the Unity Asset Store, mobile game developers can leverage select features of Snap Kit to enhance gameplay and the game discovery experience. Developers can use Snap Kit’s Login Kit to enable gamers to use their Snapchat account as a quick way to sign up and log in to games.

Meanwhile, Snap’s Bitmoji avatars will be integrated with Unity in early 2021 and will add a new level of personalization to gameplay via cartoon-like avatars.

Snap’s vast advertising community is expected to gain from Unity’s messaging service consisting of highly engaged and valuable player audiences. As of date, Unity Ads reports over 22.9 billion monthly global ad impressions, reaching more than 2 billion monthly active end-users worldwide through game developers that use its engine.

Snap Inc. Price and Consensus


Snap Inc. Price and Consensus

Snap Inc. price-consensus-chart | Snap Inc. Quote


Gen Z User Base Aids Snap’s Ad Revenue Growth

Advertising forms the mainstay of Snap’s revenues. The company is helping advertisers reach millennials and Gen Z audience, who are more active on immersive mobile platforms like Snapchat.

In the United States, Snapchat platform reaches 90% of 13-24 year olds and 75% of 13-34 year olds. Snap is also growing rapidly in other international markets, such as India.

In markets like France and the U.K., young people turn to Discover as their destination for premium mobile content, with more than two thirds of the Gen Z and millennial population in both markets watching premium content on Discover.

Snap’s popularity with 249 million daily active users provides the company with a competitive edge over the likes of Facebook , Google and Twitter in attracting ad dollars. However, competition from Facebook and Apple (AAPL - Free Report) is a serious threat as they are preparing to enter the AR advertising business where Snap is a dominant name.

In third-quarter 2020, Snap launched ‘Meet the Snapchat Generation,’ its first-ever global business-to-business marketing campaign, highlighting Snapchat’s unique audience alongside Platform Burst, which allows advertisers to purchase ad inventory across different formats to reach a significant portion of their target audience over a few days.

Additionally, this Zacks Rank #3 (Hold) company’s transition to automated or programmatic auction of Snap Ads is driving its advertising revenues. The company’s advertising products include Snap Ads and Sponsored Creative Tools like Sponsored Lenses and Sponsored Geofilters. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Moreover, Snapchat’s new conversion tracking tool, Snap Pixel is also gaining traction. The tool helps advertisers measure traffic growth on their websites. Snap’s new ad format Promoted Stories offers good opportunity to the company by helping advertising partners spend more time with audiences. The company’s decision to shift creative tools business to the programmatic platform is also expected to drive ad impressions.

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Unity Software Inc. (U) - free report >>

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