Merchants on the e-commerce platform will be able to buy and manage Snapchat story ads from within their Shopify accounts. Both Shopify and Snap’s stocks rose in early trading. The Canadian company is also integrating Facebook’s dynamic-ads feature, which automatically matches products from a seller’s catalog to the platform’s users. (CNBC)
Talking point: An alliance with Snap gives Shopify merchants access to a similar consumer demographic as Instagram, whose March launch of a checkout feature caused a dip in the Canadian company’s stock. Shopify only launched its marketing tools in October 2018, and half its merchants are already using them. That number is only likely to grow as the e-commerce platform adds new spots for stores to serve ads. Marketing technology doesn’t work particularly well for new and small merchants, so Shopify is stepping in to simplify the process as it originally did with e-commerce, said CEO Tobi Lütke in a February investor call. But expansion is likely to focus on new channels rather than new kinds of tools. Marketing isn’t an area in which Shopify has “a world-domination ambition,” said Lütke.