FIRST AIRED: March 2, 2017

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Transcript

00:00:01
>> As snapping make a huge splash on Wall Street, it must now rush to convince advertisers to send more dollars their way. But the creator of the disappearing messaging app is stepping into a thorny issue that has riled the entire digital industry. Reuters correspondent Angela Moon says, it's a matter of trust
00:00:21
>> There is no standard metrics that the digital ad market currently uses. Sort of like the Nielsen rating in the TV industry, they are lacking that. So, in a way, these digital players, including Snap, Facebook, Google, they can provide their own metrics, in a way, grading their own homework.
00:00:38
And handing it in to the teacher, the advertisers, because there is no third party audit involved in this situation. And that's why it's making it difficult for advertisers to, in a way, trust these digital players.>> The issue of transparency gained traction last year, when Facebook admitted to several errors in the way that it counts its video audience.
00:00:58
And in February, agreed to have its ad metrics checked by an independent audit. Google is also doing the same. Snap is desperate to get its ad dollars up and fast. Right now, it makes around $2 per user, while Facebook makes about 19.>> It's actually very important because 98% of Snap's revenue in 2016 generated from ad sales.
00:01:21
Now, advertisers actually want to love Snap. What I mean is that because of the current duopoly in the market with Facebook and Google, they want another player, where they can turn to as an alternative.>> To that end, Snap has been introducing its own metrics to investors, showing that users spend an average of 25 to 30 minutes and visit the app more than 18 times a day.
00:01:45
But without third party verification, will advertisers believe them?