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Chronicles

The story behind the story

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Snap says it hired Jeremi Gorman, most recently Amazon's head of ads sales, as its chief business officer and Jared Grusd as its chief strategy officer

Michelle Castillo / CNBC :

CNBC Michelle Castillo

Context & Ripple Effects

Snap's sales bench had been unstable: VP of Sales Jeff Lucas exited in February 2018 after less than two years, per Cheddar's report on his departure, leaving the company without a proven ad-sales leader heading into a critical stretch. Hiring Jeremi Gorman straight out of running Amazon's ads sales operation is a bet that scale-platform selling discipline can fix Snap's advertiser relationships.

The hire aged well by the corpus's own account: a 2019 profile credits Gorman with turning around Snap's ad business toward an expected $1.36B year, up 30% YoY, alongside product moves like Snap Select's fixed-CPM premium inventory. The arc ends with Netflix poaching Gorman in 2022 to lead its own ad-supported tier.

First-order effects

  • Snap replaces a departed sales chief (Jeff Lucas) with an executive from one of the largest ad-sales organizations in tech, while Jared Grusd's chief strategy officer role gives the company a dedicated strategy function it previously lacked.
  • Advertisers and agencies dealing with Snap get a sales leader with Amazon-scale programmatic experience at exactly the moment the company needs to stabilize revenue.

Second-order effects

  • Gorman's playbook shows up in Snap's commercial structure: Snap Select's fixed-CPM buying for premium content is the kind of simplified, guaranteed pricing a scaled ad-sales organization pushes for, shifting Snap from auction-only toward predictable buys.
  • Snap's finance and people leadership also turned over in this window, with Derek Andersen promoted to CFO and Lara Sweet to chief people officer in 2019 — a broader executive rebuild around the new commercial team.

Third-order effects

  • The pattern that emerges is big-platform ad executives as a talent pipeline: Snap imports one from Amazon, then loses her to Netflix when it builds an ad tier — ad-supported platforms increasingly staff up by raiding each other rather than developing sellers internally.
  • If the turnaround holds, Snap's recovery becomes a template case that a struggling social platform can rebuild advertiser trust through a single credible commercial hire plus simplified buying products, raising the stakes for rivals' own sales leadership choices.

The trend: Social platforms are rebuilding their ad businesses by importing sales leaders from larger tech rivals — hires valuable enough that newer ad entrants like Netflix poach them within a few years.