Augmented Reality will be Snap Inc.’s future.
Yesterday I published an article called „Snapchat won’t be Snap Inc.’s future“ and tried to highlight the evolution of Snap Inc. along with information from its IPO filing.
Discussions about the article made clear that the actual point I was trying to make did not come across so I build upon yesterday’s information.
Snap Inc.: a camera company
The company’s vision still is the most important sentence in the filing as well as in this article. Combined with a lot of interesting positions which can be found in the filing it is clear that the company is not interested in being the next „15 minutes of fame cash cow“ of Wall Street and Silicon Valley. Snap Inc. is rather interesting in creating meaningful engagement and add value to customers’ lives.
But how can you add value by being seen as an „entertainment app for 20 year olds“? Advertising revenue comes mainly from the US, user growth is slowing, the company is aware of its market problems (demographics, markets outside the US, …).
When Augmented Reality meets convenience
Snap Inc. is a company that is heavily innovating and therefore taking big net losses.
Different patents as well as acquisitions show how Snap Inc. is working on bringing Augmented Reality to the masses:
- Acquisition of AR startups
- World lenses
- Image recognition based information
- AR advertising
All of these things point to implementation of Augmented Reality from different perspectives. But where does it all come together?
Snapchat is the hub for AR and the masses
The popular app will be – at least for now – the center hub for integrating AR and rolling it out globally.
Combining the power of Spectacles (including future development as disclosed in the IPO filing) and Snapchat will help Snap Inc. to create a new ecosystem on its own, attracting new demographics, advertisers and innovating on advertising formats for the future.
Just look at the mass engagement of Snapchat (vs. its main competitor Facebook) and its focus on innovation (camera, communication, advertising) and you should be able to see the potential of Snap Inc.
Have something to add? Let me know in the comments!