Snap (NYSE: SNAP) Advertising's core business is still quite young and inchoate, though the Snapchat operator has made significant advances in scaling its advertising platform through automation. Meanwhile, the company begins to know more about the costs, which has led to numerous redundancies. While Snap characterizes itself as a "camera" company, it's ridiculous in terms of hardware, it has undeniably made a name for itself in augmented reality (AR). Lenses are among Snapchat's most popular features.
Snap now wants users to purchase products through lenses.
A Natural Extension
TechCrunch reports that the social media company introduces Shopping AR, which allows advertisers to sell products directly through Sponsored Lenses. There's a "Shop Now" button that advertisers can include in their sponsored lenses so that users can complete all purchases within the primary Snapchat app, eliminate frictions and improve the chances of the transaction being completed. Alternatively, advertisers can instead use buttons that display video ads, access a website directly to learn more about the product, or install an app.
"Shoppable AR lenses give brands a new way to leverage our unique scale and measurable ROI, whether through sales, downloads, lead generation, or video views," said Peter Sellis, Director of Revenue Product, Business Insider.
Snap's turn to copy Facebook [1
94559006] Facebook  (NASDAQ: FB) has been tirelessly copying Snap for years, replicating its most popular features and implementing them in its growing portfolio of social Media properties. The tables are spinning, as Snap borrowed a page from Facebook's Playbook.
The dominant social network has been working on making Instagram an ecommerce platform for some time, much like Instagrammer – whose monthly active user (MAU) Base is fast approaching $ 1 billion – seamlessly connects products directly to the app to buy. Instagram has partnered with prominent third-party e-commerce platforms to enable functionality.
Instagram is evolving from a simple photo / video sharing service to an AR platform that introduces AR face filters for stories about a year ago. In a broader sense, Instagram and Snapchat are both basic visual services that are, of course, very good for ads. In some cases, the experience can be so seamless that users do not even realize that they are interacting with an ad.
Snap is under tremendous pressure to expand its advertising business. Not only are investors slowly losing patience with the company (stocks have all given up on profits from the February earnings pop), but Snap is still on the hook for those massive cloud issues over the coming years. The expansion into e-commerce definitely has some potential.
Snap reports first quarter results on May 1.