Snapchat Partners with BMW for AR Adverts
SnapChat aims to bring in a new revenue stream by monetising AR content.
Snapchat are seeking to turn their dipping fortunes around by partnering with car manufacturer BMW to launch augmented reality (AR) adverts on the platform in an attempt to introduce a new revenue stream.
Advertisements are something of a contentious issue, with many users strongly resenting their intrusion into content, particularly among customers who are faced with stringent data caps. SnapChat are hoping to sidestep this issue by blending together advertising and content.
SnapChat users have long been able to apply AR filters to photos, with Snap CEO Evan Spiegel claiming that the company had created ‘the world’s first AR superstar’ with its animated AR hotdog. SnapChat also partnered with artist Jeff Koons to allow SnapChat users to view a series of AR sculptures in various locations around the world.
The latest partnership is based on SnapChat’s World Lens ads, which allow users to interact with AR objects as if they were in the real world. In this instance, allowing users to walk around a BMW car, tap the screen to interact with it, or change the colour.
Jörg Poggenpohl of BMW said of the AR advertising campaign that BMW: “wanted to insert [itself] in an organic way into the Snapchat environment and its users’ world,” Research suggested that, “This would be the most meaningful way to address [its] fans in a style that fits the channel and the target group.”
SnapChat has seen a significant slowing of its growth, with revenue down by $30 million (USD) on expected projections, and a fall in stock value last quarter. Though SnapChat remains popular, the company is experiencing problems turning that popularity into a significant revenue stream.
Nor is SnapChat alone is trying to leverage AR technology to create engaging adverts, with companies such as OmniVirt also working on partnering with various major brands to monetise AR content and bring AR adverts to consumers.
VRFocus will bring you further news on SnapChat and AR advertising as it becomes available.