Snap Inc, the parent company of Snapchat, has acquired San Francisco-based creative management platform Flite, according to Recode’s sources. The terms are still unknown, however, the deal is more likely to involve bringing in Flite’s ad tech talent rather than acquiring specific technology itself.
According to its website, Flite, founded in 2006, enables creative professionals to design ads on live, interactive canvases, while providing marketers with ‘the ability to launch, manage, measure and optimise digital ad campaigns in real time, at scale’.
The move for Flite makes sense because Snapchat runs a lot of vertical video ads and the platform and/or staff can help develop this. Snapchat has been looking to increase ad revenue recently as it looks set to bring in $1bn (£811m) in ad revenue in 2017.
Plans were revealed, in October, that Snapchat was planning to keep 100 per cent of the ad revenues from its Discover section for itself. In addition, last month, reports suggested that Snap would open up its app install ad offering – moving away from brand’s only advertising.
Snap is currently in an important transitional phase after reportedly filing for an IPO (Initial Public Offering), that could value the company at $25bn, thought to be coming as early as March. A $1.8bn funding round in May valued the company at $20bn.