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I imagine it's actually fairly simple for them to integrate ads: you'll have to watch a ~10 second ad before you can see your message.

Edited to add: Not to mention that they have a captive audience--you'll have to watch the ad, which I have to think is prime ad space that they can charge for.

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I don't think that model will ever work. Most SnapChats are trivial random stuff. Cute but you're not going to sit through 10 seconds of Citibank's credit card pitch to see your buddy with a small carrot sticking out his nose. Secondly, SnapChat's are typically under 5 seconds. So it's like watching 2 hour long commercial for a 1 hour show.

On the contrary, 5 seconds for an Ad is the sweet spot before people get pissed off. Look at YouTube videos. They require you to watch about 10 seconds before you get the "skip ad" option and it seems to be working great for them.

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