When Snap reported disappointing earnings on Tuesday, it said revenue was constrained by its shift from a direct sales model to a programmatic, auction-based model.
Snap’s excuse mimics one that publishers used in the early days of programmatic to explain their revenue shortfalls, and it doesn’t fully take into account immaturities and nuances in Snap’s ad strategy.
“They have programmatic capabilities, but they have chosen to do it in an entirely closed way,” said Andrew Casale, CEO of Index Exchange. “They’ve chosen not to connect it into the broader market and the liquidity it represents. I think it’s an unfair knock on programmatic overall.”
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