When Los Angeles-based Snap Inc. began research to replace Jeff Lucas, left in February 2018 . Advertising sales manager for what was then Oath, the 8-year-old social business / digital camera company, was navigating the growing pain both self-inflicted and market driven.
The company was facing an exodus. senior executives, having lost nearly a dozen of them since the middle of 2017. Meanwhile, the group was struggling to expand its user base to meet Wall Street's expectations , while contrasting with comparisons with fast-growing social platforms such as Facebook, Google and even Twitter. . And then the CEO, Evan Spiegel, met Jeremi Gorman.
At that time, Gorman was overseeing Amazon's ad sales, helping the e-commerce giant increase its advertising business by $ 4 billion to $ 10 billion between 2017 and 2019, and a veteran of the industry for 20 years, having spent the last six months in the largest company in the world. In other words, she knows herself well in a sales team.
Spiegel was at the bottom of the interview process when a friend suggested he talk to Gorman, touting her as a person capable of scaling up a business of publicity. After their first meeting at Snap's Los Angeles office, Gorman sent Spiegel a list of ways Snap should change. (He added that Gorman had pointed out that Snap should not try to simultaneously adapt independent advertisers and big brands, for example.) Spiegel not only hired Gorman in October; He also decided to split the position in two: Business Manager and Strategy Manager.
Snap is not the only technology company to re-evaluate its top ranks. Facebook and Google have both gone through their own troubles before bringing experienced veterans to win the trust of Wall Street and Madison Avenue. For Facebook, it meant stealing Sheryl Sandberg from Google and Carolyn Everson from Microsoft; for the first days of Google, it meant the signature of Eric Schmidt. Like these companies, Snap's approach indicates that she is also growing up.
The Plane in Several Points of Snap
Advertising, we know it, is personal, but not so pleasant, business. As part of the redesign of the company's advertising structure, a new team of executives, led by Gorman, is being deployed to co-locate with marketers and agencies in a way that, not surprisingly, imitates the model of a publisher, thus changing the direction of the sales strategy.
The verticals (recreation, technology, automotive, retail, restaurants, travel / industry / energy and consumer goods) will help the company dig deeper into the pockets of the big brands.
Gorman stated that the company also made other changes to its advertising business, including assigning a team to the six largest advertising agencies, another third intention to inform advertisers about scheduled self-service purchases from Snap.
"There will always be advertisers who need R & D experts; there are always advertisers who need brand experts, "she said. "There will never be a day when someone will want his salesperson to know less about his brand or his sector."
In the past year, Snap's ad segment has been turning more and more towards performance-based indicators rather than reaching. But in an attempt to evolve the self-service advertising industry (another release of the social media book), Spiegel said the goal was to let major brand advertisers languish. This is a problem that Gorman highlighted during the interview process, he noted.
"We are very grateful to be able to benefit from Jeremi's talent, experience and positivity," he said. "Jeremi began taking decisive action that brought our team together and inspired everyone to grow our business."
Gorman joined Spiegel as a result of the company's call to talk about the advertising activity of the past. three months and where things are getting ready in 2019. The move was similar to what others did, like when Twitter introduced the former chief operating officer, Adam Bain, or that Facebook appealed to Caroline Everson, or that Google appealed to Tim Armstrong. Snap bet that Gorman will follow in the footsteps of his peers, helping a struggling advertising company recover. However, the question of whether Gorman can direct the change from within is always asked.
An analyst said, "How can there be an adult in the room if no one can tell Spiegel what to do?"
Others seem to think that Gorman already has an impact. Just this week, a longtime skeptic at BTIG prompted Snap's actions to "buy", prompting the shares to increase by 10% . The gain is due in part to a better discovery section, better user fluidity and better management.