Viacom to sell ads for Snapchat

Though the exact length of the deal isn’t known, the Journal is reporting that it is a “multiyear” deal.

Snap already carries content for Viacom-owned networks Comedy Central and MTV. Operating losses more than doubled at Paramount, which had only two films that were on more than 2,000 USA movie screens during the period – comedy “Daddy’s Home” and action movie “Mission Impossible: Rogue Nation”.

The ad deal that Snapchat and Viacom have inked will be extended, Viacom will add more channels to Snapchat Discover and Viacom will now be able to sell Snapchat’s USA owned and operated ad inventory. Since its US launch in January 2015, the Comedy Central channel on Snapchat Discover has become a vibrant pipeline for Comedy Central to develop fresh comedic voices and original content. It is one of the most popular brands on the platform. Viacom’s involvement will also allow marketers to buy ad packages that span Snapchat and its traditional television networks, ensuring that advertisers can reach the coveted teen and millennial audience whether they consume content via television or on mobile.

Now, Viacom is hoping to leverage its relationship with Snapchat in order to increase its bottom line through advertising sales. Through the partnership, Snapchat will have unique access to cover Viacom’s tentpole events, such as MTV’s Video Music Awards, BET Experience and MTV’s EMAs. Jeff Lucas, chief of ad sales at Viacom, said both companies are targeting the same young viewers. Snapchat is a mobile app where photos, videos and messages disappear in seconds, the Journal said.

Total revenue declined 5.7 percent to $3.15 billion. Theatrical revenue decreased $75 million in the quarter “as carryover revenues decreased $46 million, principally due to an unfavorable comparison with the strong performance of Teenage Mutant Ninja Turtles in the first fiscal quarter of 2015”, Viacom said. Per-share earnings, after excluding some items, were $1.18, down 9% and matching the consensus estimate of analysts polled by Thomson Reuters I/B/E/S.