Snap Inc., Snapchat's parent company, is adding to its list of Discover content partners this week, launching a channel for Mitú, the Santa Monica-based online media company whose content caters to English-speaking Latino Millennials.
Landing on Snapchat--which, according to the Wall Street Journal, has been meeting with investors in advance of its anticipated IPO--is a big deal for the four-year-old Mitú. The company is "inserting our pretty large voice into a very mainstream offering, sitting alongside a lot of the top brands in media," says Danny Johnson, Mitú's chief marketing officer.
This should also be a welcome addition for Snapchat's Hispanic users, who will now be getting content that is similar to that of BuzzFeed's but caters specifically to them. However, the biggest winner here is likely Snap. That's because adding a media partner whose audience is primarily Latino is a big deal from an advertising point of view.
For advertisers, reaching a wide swath of people is good, but it's not great. Great is when you know exactly which people you're reaching, and that's difficult to do if a publisher doesn't know a thing about its audience. The only information Snapchat asks for when you sign up is your name, age, email, and phone number.
That could be a problem for Snapchat, because unlike, say, Facebook, where users ramble on and on about the things they're into and hit Like on all kinds of things, Snapchat doesn't really have too much data on its users. That can make ad targeting a tough task.
But Snap didn't earn its nearly $20 billion valuation for no reason. The company has quickly found ways to help its advertising clients reach their intended Snapchat users, making those tools available to advertisers earlier this year.
One of those ways is called Snap Audience Match, which lets marketers start with their own lists of email address and smartphone IDs and match them up with the ones Snapchat has.
Another is called Snapchat Lifestyle Categories. This tool lets advertisers match their ads to users based on the content they consume while on Snapchat. This includes anything from Snap's Discover channels (i.e. Mitú) to its Live stories--but not the content users create and send to one another. Among the user categories Snap offers marketers are gamers, music fans, sports fans, beauty mavens, and techies.
Based on what channels you go to on Discover, Snap can figure out quite a bit about you. For example, if you go to Cosmopolitan, Snap will guess you're probably a woman, about 35 years old, and making around $60,000 a year, based on figures provided by the research Cosmopolitan provides to potential advertisers. Similarly, if you frequent Complex, then Snap will guess you are a young male into topics like hip-hop and sneakers. Like BuzzFeed? You're likely a Millennial.
And now, with Mitú, Snap is going to have a solid idea of who among its users are Hispanic. That's a pretty big deal for advertisers, considering how big this consumer group already is ($1.3 trillion in 2015) and the growth for which it's projected (expected to reach $1.7 trillion by 2020). Among them, the biggest and fastest growing segment are U.S.-born Latinos, who by and large consume content in English, says Mike Su, Mitú's chief product officer.
"The traditional playbook has always been 'If you want to market to Latinos, you should do it in Spanish language on television,' " Su says. "What we bet our business on is that Latino youth are online and in English."