Snap, the parent company of Snapchat, is placing a significant bet on augmented reality (AR), considering it to be “one of the most meaningful advancements in computing that the world has ever seen,” according to CEO Evan Spiegel. He made these remarks during the company’s quarterly earnings call on Thursday, April 25. Snap’s strategic focus is now centered on three main areas: AR, revenue growth, and expanding its community.
During the earnings call, Spiegel emphasized the transformative potential of augmented reality (AR) technology. “We have never worked on anything as profound and meaningful as augmented reality,” he stated. He described how AR integrates digital experiences into the physical world, revolutionizing everyday computing use.
Snap’s AR tools have found applications across various sectors. Advertisers and brands utilize these tools to enhance shopping experiences with virtual storefronts and try-on features, as highlighted in a recent investor presentation. Creators leverage the tools to design AR experiences and monetize them, with over 350,000 developers currently using Snap’s free AR development platform, Lens Studio.
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The impact of AR on Snapchat’s user engagement is significant. According to company data, more than 70% of new users interact with AR features on their first day on the app. “On average, over 300 million people engage with augmented reality daily on Snapchat,” Spiegel noted, adding that the platform’s AR features are used billions of times each day.
In the first quarter, Snap introduced AI-powered AR Lens creation to increase community engagement and launched a new advertising product, Sponsored AR Filters, to expand advertiser reach through the Snapchat Camera. They also improved their AR Carousel ranking model, resulting in a 50% increase in the visibility of AR Lenses to users.
Spiegel concluded by underscoring the importance of innovation in meeting the company’s strategic goals, particularly in the realms of product development, advertising, and the future of AR.
For more detailed information, you can access the full Snap quarterly earnings release.