Snap Inc. has purchased a trove of data from Foursquare that will help advertisers better target where their ads are being served. Terms of the deal, which was announced Tuesday, weren't disclosed. (Snap declined to comment when contacted by Inc.)
The social media behemoth, which generates revenue through advertisements, says it will use Foursquare's "polygon" data to analyze its location-based geofilter campaigns (the colorful graphics that overlay pictures and videos on the app). By mapping the roughly 90 million locations that Foursquare tracks, advertisers that work with Snapchat can, in theory, create more targeted campaigns.
"With this partnership, the power of Foursquare location intelligence and our proprietary map of the world is validated once again -- and by yet another industry leader who has vetted our place shapes and understands the power of our data," said Mike Harkey, VP of business development at Foursquare. "We look forward to seeing the creativity unfold with Snap's new Geofilter capabilities." Other tech companies that rely on Foursquare's data include Twitter, Uber, Apple, and Pinterest.
As Snap continues to make a more concerted effort to deliver information to its ad partners, the new deal will likely attract more brands. Since September 2015, the company has signed deals with more than 11 audience measurement firms, all of which have helped to boost revenue. Snap is reportedly on track to see $350 million in sales this year, up from just $59 million in 2014.
"All of these advertisers are used to granular targeting capabilities from companies like Facebook and Twitter," says Cathy Boyle, an analyst with ad research firm eMarketer. "A year ago, Snapchat was more limited in what it could do," she adds. "Now, they have third parties that will integrate with Snapchat's platform to be able to say to the advertiser, 'You don't have to rely on Snapchat to determine whether or not they reached the people they wanted to.' "
Snap, which this year surpassed Twitter to become the fastest-growing social media company in the U.S., now counts 150 million daily active users, and over 10 billion video views each day. The company is said to be planning for an IPO as soon as March of next year, which could value it at more than $25 billion.