Why Snap is leveraging augmented reality technology to get a leg up in the social commerce arms race

By Kimeko McCoy

Snapchat’s iconic special effect filters, or “lenses” as the company calls them, aren’t just for dog ear or flower crown selfies anymore. As the social media commerce race heats up, the platform is asking advertisers to bet on its virtual reality technology to drive sales.

So far, brands like Puma and Dior have, and others like direct-to-consumer intimates brand CUUP say they plan to move more ad dollars to the app because of the offering.

In recent years, the social commerce space has gained momentum with both Amazon and Pinterest launching similar shoppable, virtual try-on technology. This May at Snap’s Partner Summit, the social media platform introduced a slew of new AR try-on experiences that mimic in-person shopping. For example, DTC skincare brand TULA launched an AR lens to promote an under-eye cream. Users could see themselves in the ad as it simulated the cream application and revealed what they would look like after using the product.

“We’re just getting started on taking all the things people love about [in-store] shopping and replicating them through augmented reality,” said Mark McMaster, head of emerging commerce at Snapchat, adding that the social nature — i.e. users can try on, shop and share with friends — differentiates Snap’s offering. “The camera will be meaningful to the shopping experience. Not only when people are on the go with their phones, but also when they’re actually in stores, shopping,” he added.

Since launch, advertisers have shown an interest in Snap’s technology as a way to scale and tap into the platform’s Gen Z audience. Last week, one of the largest agency holding groups, WPP, announced an inaugural partnership with Snap to help WPP clients leverage Snap’s augmented reality capabilities. Apparel brands like Puma, Dior and Hoka sneakers have already launched ad campaigns in which Snapchat users could virtually try on products.

Moving forward, Snap’s McMaster says his team, vying for more ad dollars, plans to build on that momentum, scaling AR capabilities to more DTC and small businesses. In May, Snap launched a creator marketplace so brands interested in AR advertising can find the right resources. The platform is also 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 advertising goals. But per Snap, those costs can start at $5 per day. For virtual try-on specifically, some brands are achieving as low as $0.01 per product try on, a spokesperson said. Snap is working closely with smaller brands that want to drive awareness as well as those driving sales through product launches. There’s a creative strategy team in place that works category by category to help advertiser, he said.

“We’re really investing in what’s already a thriving ecosystem, but continuing to grow that so that more brands can use AR,” McMaster said.

Snapchat isn’t 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 …read more

Source:: Digiday