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Snapchat rolls out new tools for advertisers as it takes aim at Facebook's ad revenues

Tyrone Stewart

Snapchat Coca Cola adSnapchat is introducing two new tools in an effort to make its platform more enticing and rewarding for advertisers – and start making a dent in Facebook’s mobile ad revenue share.

The first tool will enable advertisers to target users, with app install ads, that are most likely to install their apps. Snapchat is using an in-house machine learning algorithm to effectively target these users.

"We've been listening closely to direct response advertisers and are excited to announce the ability to 'bid for installs' in our auction," Peter Sellis, Snap director of monetisation product, told Business Insider in a statement.

In addition, Snapchat has made improvements to its overall ad targeting. The image messaging app will now enable advertisers to retarget users who have previously interacted with one of their ads.

In January, Snapchat signed a deal with Oracle Data Cloud to enable marketers to use data from offline purchases to target customers with more relevant ads on the Snapchat app.

Despite the work Snapchat is putting into advertising, its 2017 ad revenue prediction was cut to $770m last month – $30m less than previously projected. Although, that total would represent a 157.8 per cent year-on-year increase in ad revenues.