Introduction to Snapchat’s Virtual Reality Technology
Snapchat’s iconic special effect filters, or "lenses," have been a staple of the social media platform for years. However, the corporate is now asking advertisers to bet on its virtual reality technology to drive sales. This move is an element of a bigger social commerce race, with platforms like Amazon and Pinterest launching similar shoppable, virtual try-on technology.
The Rise of Social Commerce
In recent years, the social commerce space has gained momentum. Both Amazon and Pinterest have launched similar shoppable, virtual try-on technology, allowing users to try on products virtually before making a purchase order. This May, Snap introduced a slew of recent AR try-on experiences that mimic in-person shopping. For example, DTC skincare brand TULA launched an AR lens to advertise an under-eye cream, allowing users to see themselves within the ad because it simulated the cream application and revealed what they might seem like after using the product.
How Snapchat’s Technology Works
According to Mark McMaster, head of emerging commerce at Snapchat, the social nature of the platform’s AR try-on experiences differentiates it from other platforms. "We’re just getting began on taking all of the things people love about [in-store] shopping and replicating them through augmented reality," he said. Users can try on products, shop, and share with friends, making the experience more social and fascinating. The camera shall be meaningful to the shopping experience, not only when individuals are on the go along with their phones but in addition after they’re actually in stores, shopping.
Advertiser Interest in Snapchat’s Technology
Since the launch of Snapchat’s AR try-on experiences, advertisers have shown an interest within the technology as a option to scale and tap into the platform’s Gen Z audience. Last week, certainly one of the most important agency holding groups, WPP, announced an inaugural partnership with Snap to assist WPP clients leverage Snap’s augmented reality capabilities. Apparel brands like Puma, Dior, and Hoka sneakers have already launched ad campaigns during which Snapchat users could virtually try on products.
Scaling AR Capabilities
Moving forward, Snap’s McMaster says his team plans to construct on that momentum, scaling AR capabilities to more DTC and small businesses. In May, Snap launched a creator marketplace so brands taken with AR promoting can find the appropriate resources. The platform can be touting creator marketplace studios that use machine learning to bring additional try-on capabilities into the advertiser’s campaign. Advertising costs on Snap fluctuate depending on promoting goals, but per Snap, those costs can start at $5 per day. For virtual try-on specifically, some brands are achieving as little as $0.01 per product try on.
The Social Commerce Arms Race
Snapchat is not the only platform leaning into virtual try-ons. Call it a social commerce arms race, as social media platforms like Instagram, Snap, and Pinterest look to garner an even bigger share of ad dollars. Thanks to the pandemic, online shopping has skyrocketed, pushing advertisers to take a re-evaluation at virtual try-on options. According to research from consumer insight company Piplsay, 34% of Americans have already experienced virtual try-on technology, mostly for clothing and eyewear.
Case Studies: CUUP and TULA
The team at Snapchat pointed to 2 direct-to-consumer brands, CUUP intimates brand and TULA skincare, who recently wrapped up their very own AR campaigns on the platform. At present, about 10-15% of CUUP’s media spend goes toward Snapchat, the third largest portion of budget behind Facebook and Google. The DTC brand has advertised on Snap for the last two-and-a-half years to retarget shoppers who were already out there. But with the recent introduction of virtual try-on technologies, the corporate said there are plans to extend Snap spend.
Conclusion
In conclusion, Snapchat’s virtual reality technology is changing the sport for advertisers and consumers alike. With its social nature and skill to copy in-person shopping experiences, the platform is poised to change into a serious player within the social commerce space. As the social commerce arms race continues, it is going to be interesting to see how Snapchat and other platforms evolve and innovate to fulfill the changing needs of consumers and advertisers. With its unique proposition for small to medium businesses to drive DTC shopping and revenue, Snapchat is certainly a platform to observe in the approaching years.
