Here's What NBC Understands About Advertising In The Age Of Snapchat

Loop Capital Markets analyst Blake Harper praised the traditional media giant NBC Tuesday for adequately adjusting its advertising strategy to reflect the demands of the time.

NBC and owner Comcast Corporation (NASDAQ: CMCSA) proved their 21st-century savviness through a recent deal with Snap Inc (NYSE: SNAP) regarding upcoming Olympic coverage.

The two agreed to feature coverage of the 2018 winter games in live stories beside user-generated content and to allow NBC to sell relevant geofilters and lenses to advertisers.

Additionally, NBC will collaborate with Buzzfeed to produce Snapchat Discover content.

Scope Of Impact

"NBCUniversal is recognizing that younger people are not watching the Olympics on TV as much as older generations, and we believe the company has been forward thinking by distributing Olympic content widely across its online properties and its NBC Sports app,” Harper wrote in a note.

During the Rio Summer Olympics, nearly 35 million Americans — most of whom were under age 35 — watched more than 230 million minutes of NBC content on Snapchat.

“While the reported ad commitments from NBC of $50 million to $70 million are immaterial to our 2018 revenue estimate of $1.98 billion, we believe Snap and its partners are better positioned as a more effective TV channel for advertisers looking to target younger users," analysts wrote.

Not only is NBC poised to expand its audience, but Snap is geared to accrue more TV advertisers from the partnership.

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