Snap gives free ad credits to lure more advertisers

Snap is offering free ad credits to advertisers running vertical video ads on other platforms.

Why it matters: It's an attempt to lure more advertisers onto their platform from competitors like Instagram.

Advertisers are being notified of the opportunity from Snap sales reps, who are primarily going after app install, e-commerce and other mid-small-sized advertisers.

It isn't all bad news. Snapchat has historically had a creative barrier with smaller advertisers who didn't have the capacity to create vertical video ads — Snap's only accepted video ad format. Now, they can onboard new advertisers that have experimented with the technology elsewhere.

• The company launched Snap Publisher tools over the summer to make these challenges easier, but some advertisers that have historical relationships with Instagram may opt to test the technology with a bigger partner before turning to Snap.
• Snap Ads are cheaper than Facebook ads, which may help lure some mid-market advertisers over.