When Snapchat introduced its augmented reality (AR) features, it not only revolutionized the way we communicate but also unlocked a hidden revenue stream. While many users enjoy the fun filters and interactive lenses, few realize the underlying monetization strategies at play. In this article, we will delve into the various ways Snapchat monetizes its AR features and how it strategically leverages this technology to generate revenue.

1. Sponsored Filters and Lenses

Snapchat offers a range of sponsored filters and lenses in collaboration with brands. These filters are often tied to specific events, holidays, or movie releases. Partnering with brands allows Snapchat to monetize its AR features by charging advertisers for creating sponsored filters and lenses that users can then use and share with their friends. These filters not only engage users but also serve as a form of native advertising.

For example, during the release of a new superhero movie, Snapchat may introduce a lens that transforms users into their favorite hero. This not only increases user engagement but also provides an opportunity for the movie studio to promote its latest release.

2. App Install Ads

Snapchat uses its AR features to create immersive app install ads. These ads incorporate interactive elements and filters that allow users to virtually experience a brand’s app before installing it. By giving users a taste of the app’s functionality through augmented reality, Snapchat increases the chances of app downloads. Brands can pay Snapchat to showcase their apps in these creative and engaging formats.

For instance, a fitness app may have an AR filter that allows users to see themselves virtually working out with a personal trainer. This interactive experience not only advertises the app but also gives users a preview of its features.

3. Sponsored Location-Based Filters

Snapchat’s location-based filters provide an opportunity for local businesses to create sponsored filters tied to specific geographical areas. These filters can be used by Snapchatters within a designated location, serving as a form of geo-targeted advertising. Local businesses can pay Snapchat to promote their brand or event through these filters, increasing their visibility among users in the area.

For example, a popular coffee shop can create a sponsored filter that appears when Snapchatters are in close proximity. By inviting users to try their latest drink or visit their location, the coffee shop can attract more customers and generate revenue.

4. Sponsored Community Filters

Snapchat also offers sponsored community filters, which allow users to express their support for local events, causes, or even brands. These filters add an extra layer of personalization to users’ snaps while creating an opportunity for brands to engage with their target audience. Brands can pay Snapchat to create custom filters that align with their campaign or mission, thereby increasing brand awareness.

For instance, a clothing brand promoting equality and diversity may create a sponsored community filter for Pride Month. Users can then overlay this filter on their snaps, showing their support for the cause while also providing free advertising for the brand.

5. Shoppable AR

Snapchat has also ventured into the realm of e-commerce by introducing shoppable AR. This feature allows brands to create interactive and immersive shopping experiences within the app. By combining augmented reality with e-commerce, Snapchat enables users to try on virtual products, such as clothing or makeup, before making a purchase.

For instance, a fashion brand may create an AR lens that allows users to virtually try on different outfits. Users can then click on the showcased items to purchase them directly within the app. This seamless integration of shopping and augmented reality provides Snapchat with a new avenue for monetization.

6. Sponsored Snap Ads

In addition to sponsored filters and lenses, Snapchat also monetizes its AR features through sponsored snap ads. These ads appear within users’ feeds, and some of them incorporate augmented reality elements. By making the ads interactive and engaging, Snapchat ensures that users are more likely to pay attention to sponsored content and increase brand exposure.

For example, a car company may launch an ad that allows users to virtually “sit inside” their latest model and explore its features through augmented reality. This not only generates revenue for Snapchat but also provides an immersive advertising experience for the brand.

7. Brand Partnerships

Snapchat frequently collaborates with brands on innovative projects, leveraging AR technology to create unique and memorable experiences. These collaborations range from interactive games and virtual try-on experiences to co-branded filters and lenses. By partnering with brands, Snapchat monetizes its AR features through sponsored content, in-app purchases, or revenue sharing agreements.

For instance, Snapchat partnered with a popular shoe brand to create an interactive game that allowed users to virtually jump and collect branded sneakers. This partnership not only generated revenue but also increased brand awareness and customer engagement.

8. In-App Purchases

In-app purchases offer another way for Snapchat to monetize its AR features. Users can customize their snaps by purchasing additional filters, lenses, stickers, or other virtual items within the app. These purchases enhance user experience and also serve as a revenue source for Snapchat.

For example, users may choose to buy a customized lens that relates to their interests or personal style. This not only adds a personal touch to their snaps but also contributes to Snapchat’s revenue stream.

9. Sponsored Storytelling

Snapchat’s AR capabilities enable brands to tell immersive and interactive stories to their audience. Brands can create sponsored lenses or filters that allow users to become part of a brand’s story. By engaging users in this way, brands can increase brand loyalty and awareness, while Snapchat earns revenue from the sponsored content.

For instance, a travel company may create an AR lens that transports users to idyllic vacation destinations. Users can then share their “virtual trips” with friends, promoting the brand and inspiring others to book their dream vacations.

10. Data Insights and Targeted Advertising

Snapchat’s AR features also provide valuable data insights and allow for targeted advertising. By analyzing user engagement with sponsored filters and lenses, Snapchat can gather data on user preferences and behavior. This data can then be used to offer targeted advertising opportunities to brands, ensuring their ads reach the most relevant audience.

For example, if a sponsored lens receives high engagement from users in a particular age group or location, Snapchat can offer targeted advertising packages to brands looking to reach that specific demographic.

Frequently Asked Questions

1. Are Snapchat’s AR features only available on smartphones?

No, Snapchat’s AR features are primarily accessible through the smartphone app. However, the company has also expanded into smart glasses, such as Snapchat Spectacles, which offer a unique AR experience.

2. Can individuals create and monetize their own AR filters or lenses on Snapchat?

Currently, Snapchat only allows brands and businesses to create and monetize sponsored filters and lenses. However, individuals can use these features to enhance their own snaps without generating direct revenue.

3. How does Snapchat ensure privacy and data protection with its AR features?

Snapchat prioritizes user privacy and data protection. The app’s AR features collect data on user engagement but do not infringe on users’ personal information. Snapchat follows strict privacy guidelines to safeguard user data and comply with relevant regulations.

4. Can users disable sponsored filters and lenses?

While users cannot disable sponsored filters and lenses entirely, they can choose not to use them. Snapchat provides a wide range of filters and lenses, both sponsored and non-sponsored, allowing users to personalize their snaps as desired.

5. How does Snapchat regulate the quality and appropriateness of sponsored filters and lenses?

Snapchat has stringent guidelines and review processes in place to ensure that sponsored filters and lenses meet quality standards and comply with the platform’s community guidelines. Any inappropriate or offensive content is swiftly removed from the platform.

Sources:

– Snapchat Official Website

– Business Insider