SQ Potential For The Future

Exciting perspective

…combined with a network of small merchants, what makes Square’s data even more valuable is that it also has a network of small businesses all looking to get in front of customers. That means Square could be only a few steps away from building an advertising platform for its merchants with highly targeted ads.

Not only that, but Square is uniquely positioned to track the effectiveness of those advertisements from ad impression all the way to completed purchase based on its unique position of having touch points with both the consumer’s and the merchant’s financial data. Square could even offer merchants the opportunity to only pay for advertisements as they convert by taking the cost out of each card swipe, like it does with Square Capital. Google and Facebook can’t compete with that.

With tens of billions of dollars spent on advertising in the United States alone, that’s an even bigger opportunity than the $26 billion addressable market Friar pointed to at Square’s investment day last year. Google brought in over $95 billion global ad revenue last year. Facebook brought in almost $40 billion. Square generated less than $1 billion in total adjusted revenue.





Thanks for sharing. I did not think of Square as a data company. It has been on my watchlist ever since i saw it being used at farmers market by lady selling home made jam last year.

It might just help me pull the trigger.



As I think through this further, does anyone know how SQ’s data gathering and thus the potential for targeted advertising is any different than the data gathering and targeted advertising opportunity the big credit card companies have?


Slow down on the TAM for Square advertising. It is not the same as total advertising dollars. It extends only to Square merchants and their customers.

A lot of Square merchants are very small and most likely spend $0.00 on advertising. My wife’s hairdresser is a Square merchant. What is she going to advertise to who? This is not an atypical example.

I’m long Square, but I’m not all that excited about the potential for increased revenue based on targeted ads.