Snapchat has begun testing e-commerce ads as part of its effort to diversify revenue streams.

The 10-second video advertisements link to an in-app internet browser that allows users to shop sponsors’ e-commerce sites. Lancome and Target started running ads on Friday.

Snapchat has been rolling out and experimenting with various advertising products over the last 18 months. The Venice company is working to capitalize on its more than 100 million daily users, each of whom spend an average of 25 to 30 minutes on the app each day, according to reports.

There are generally two approaches when it comes to purchasing ads on new internet platforms, said Farbod Shoraka, chief executive of online flower seller BloomNation of Santa Monica.

“One is you become an early adopter because that might be your opportunity to capture an audience on the cheap because the pricing hasn’t been calibrated correctly yet,” said Shoraka, noting that’s how many approached Facebook early on. “Or, there are other companies that will want to see more data and performance before they jump in.”

Larger retailers, which have already saturated other advertising channels and are looking for better performance at the margins, could be best positioned as early adopters of Snapchat, said Shoraka.

“My prediction is you will see a lot of big brands on there because they have the marketing budget and they have exhausted the other channels,” he added.

But Snapchat’s new ads may not be for everyone.

“I would caution the smaller companies that don’t necessary have that massive budget … Wait and see isn’t necessarily a bad thing.”

Technology reporter Garrett Reim can be reached at [email protected]. Follow him on Twitter @garrettreim for the latest in L.A. tech news.