Snapchat, the ephemeral messaging app that your teenager is absolutely obsessed with, is apparently worth $10 billion. At least that's the valuation connected to the latest rumored round of funding – which could include money from the likes of Yahoo.
$10 billion may sound like a lot (and it is a lot), and you wouldn't be alone in your scoffing, but big names in the social arena seem to think it's not that crazy of an idea. A couple of months ago, for instance, Twitter CEO Dick Costolo tweeted that Snapchat's sky-high valuation was not absurd.
"Snapchat at $10b not absurd. Crazy growth, clear monetization path, & one of the best social product thinkers out there," he said.
Now, it appears, the first step on that monetization path has been taken. According to Snapchat CEO Evan Spiegel, ads are a comin'.
The Wall Street Journal reports Spiegel's admission at a recent conference, where he said the company would debut advertising "soon".
“We’re cutting through a lot of the new technology stuff around ads to sort of the core of it, which I think has always been telling a story that leaves people with a new feeling,” Spiegel said. “They’re not fancy. You just look at it if you want to look at it, and you don’t if you don’t," he said.
So, the ads will be skippable. The "sponsored messages" will pop up inside Snapchat Stories – the app's longer-form stream of messaging. More specifically, the "Our Story" element of Snapchat Stories where multiples users posts photos to streams surrounding events. Apparently, the ads won't interfere basic snaps sent between two users. Yet.
"Soon" is the only time frame Spiegel hinted – so be on the lookout. We knew this was coming, as Snapchat's been discussing the concept with advertisers for a while now. Plus, at some point, Snapchat had to do something to earn that valuation, right?
Image via Snapchat, Twitter