During the IAB NewFronts event of 2024, Snapchat announced new augmented reality (AR) and machine learning (ML) tools. These tools make it faster and easier for brands to develop AR try-on assets. The focus is on accelerating the conversion of 2D product catalogs into interactive try-on experiences.
Impact on business strategies
This technological advancement offers brands an innovative way to showcase their products. This increases user engagement and enhances the consumer experience. Ultimately, this can lead to higher sales figures. Snapchat collaborates with major names such as Amazon and Tiffany & Co. These partnerships highlight the success and effectiveness of these tools.
Technological advancements in advertising
Snapchat also introduces the ability for brands to create personalized AR ads using generative AI technology. This technology enables brands to utilize unique ML models. These models add realistic facial effects to lenses, resulting in a personalized advertising experience.
AR Extensions make it easier to integrate AR lenses and filters into all of Snapchat's advertising formats. This allows brands to present their advertising messages seamlessly and more attractively.
Increased market impact
The introduction of these tools led to a revenue increase of 21% in the first quarter of 2024 for Snapchat. This indicates strong growth in the use of advanced advertising technologies. An 85% year-over-year increase in small and medium-sized advertisers on the platform demonstrates widespread acceptance of Snapchat's revamped advertising capabilities.
These new AR and ML tools position Snapchat as a pioneer in shaping the future of online advertising. At the core are interactive and personalized advertisements.