Since Kik knows a lot about its users via first-party data, that audience intel will command slightly higher rates from True[X] than it would otherwise pay to a publisher partner.
Kik says there are “downstream” benefits for brands, since it claims 30% of Kik users continue engaging with advertisers after completing a rewards-based interaction.
Beyond a one-time sticker download or interactive video ad view, advertisers want to figure out how messaging campaigns contribute to outcomes such as a sales conversion, so Kik is in the early stages of exploring ROI measurement to help determine brand lift and offline impact.
Since joining Kik a year ago last month, Jacobs believes growing brand interest in chat bots and messaging put the company in a beachhead position.
“With Gen Z, they take much more of an active participatory role in creating their own media like on Vine and Instagram, rather than being a passive recipient,” Jacobs said. “But because messaging is so personal and used so often for a specific purpose, the only way you bring brands in is to be additive and engaging.”