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Snapchat Focuses on E-commerce Through SeatGeek Integration

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Snap (SNAP - Free Report) owned Snapchat is evolving into a social platform from a mere photo or video sharing application. The company’s e-commerce strategy is a step toward that direction.

Snap has recently teamed up with New York-based event ticket-search engine, SeatGeek that will let users buy tickets to events through Snapchat Stories.

Snap has been working on in-app purchases for quite some time now. In February, Snap launched Snap Store to sell Snap merchandise, an alternative revenue channel for the company.

However, the integration with SeatGeek will be the first time that Snap offers ticket-buying experience on the platform. The partnership will likely bring more sports, concerts or Broadway play events tickets to Snapchat.

In October 2017, SeatGeek signed up Snap’s biggest rival Facebook (FB - Free Report) as its primary distribution partner.

Why Snapchat?

Growing popularity of Snapchat among teenagers is probably the reason that attracted SeatGeek to the platform.

SeatGeek co-founder Russ D’Souza was quoted saying, “We see Snapchat as an incredible opportunity for teams and artists to increase discovery of their events while also potentially rewarding their most dedicated fans with exclusive offers.”

SeatGeek recently entered into a multi-year partnership with National Football League (NFL) for serving as a secondary ticket provider for the league.

Notably, the first sports league to feature on Snapchat’s Discover, in order to provide users access to football content, was NFL. A total of 42 million viewers of NFL content on the platform during the 2016-2017 session represented a huge chunk of its U.S. user base, which was 61.7 million in 2016, per eMarketer.

Snapchat has 191 million daily actives on the platform. By giving users the convenience to purchase tickets on the app, the company will be able to stop them from migrating to other platforms. This will also result in an increase in user engagement and will likely drive advertisers to the platform.

Snap Inc. Price

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Zacks Rank & Stocks to Consider

Snap currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the broader technology sector include Twitter (TWTR - Free Report) and  NetApp Inc. (NTAP - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

Long-term earnings growth rate for Twitter and NetApp is projected to be 23% and 12%, respectively.

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