Snap Acquires 3D Mapping Developer Pixel8Earth for $7.6M

Snap Acquires 3D Mapping Firm Pixel8earth

Last week, reports surfaced regarding Snap’s $124 million acquisition of Fit Analytics. Simultaneously, SEC filings revealed another, smaller deal completed in the same quarter, valued at $7.6 million. We now know this acquisition involved Pixel8earth, a company specializing in 3D mapping technology utilizing crowdsourced data.

Expanding Augmented Reality Capabilities

Pixel8earth is headquartered in Boulder, Colorado. Following the acquisition, four employees from the startup have joined Snap to contribute to the development of map-related products. Their focus will be on creating tools compatible with Snap’s location-based augmented reality experiences, similar to the Local Lenses introduced at last year’s Partner Summit.

Strategic Alignment with Upcoming Announcements

Previous reports indicated potential launches related to Snap’s broader e-commerce strategy at this year’s Partner Summit. It is now understood that announcements concerning advancements in AR mapping will also be featured.

Talent Acquisition and Technology Integration

The ultimate fate of Pixel8earth as a standalone entity remains uncertain. Snap may choose to integrate selected technologies and ongoing development into existing products like Snap Map. However, considering the acquisition price, it is likely primarily a talent acquisition.

Pixel8earth’s Innovative Approach to Mapping

Co-founded by Sean Gorman and Pramukta Kumar, both experienced entrepreneurs and mapping PhDs, Pixel8earth developed a platform that incentivized users – termed “ambassadors” – to contribute to a global mapping database. These contributors utilized 360 cameras and other imaging devices to record and submit data. This approach shares similarities with the technology developed by Mapillary, which was acquired by Facebook.

Snap’s Mapping Strategy and User Engagement

Snap has been actively developing its mapping features to enhance user engagement. A significant acquisition in this area was Zenly, a Paris-based startup acquired in 2017. Zenly allowed users to share their location with friends on a map. Snap also acquired StreetCred earlier this year, though its service was discontinued post-acquisition.

Differentiation Through Personalization

Snap’s mapping efforts are distinguished by a focus on personalization. This contrasts with platforms like Google Maps, which prioritize universal accuracy and comprehensive coverage. Snap Map aims to provide a more tailored experience, reflecting users’ individual networks and interests.

Growth and Future Potential of Snap Map

Snap reported that Snap Map was used by over 250 million Snapchatters monthly. Jacob Andreou, VP of Product, emphasized that each user’s map is unique, reflecting their personal connections and activities. He stated, “The Map is built to see where your friends are and what they’re up to quickly and easily.”

Optimism Amidst Pandemic Challenges

Despite potential setbacks due to pandemic-related lockdowns, Snap CEO Evan Spiegel expressed optimism about increasing engagement with Snap Map as the world reopens. He noted inflection points in key behaviors like Story posting and map usage as restrictions ease.

Monetization Opportunities on the Horizon

Beyond engagement, Snap is exploring monetization opportunities within its mapping features. Peter Sellis, Senior Director of Product, highlighted the potential of local digital advertising, stating, “We want to do it right.”

Testing Commercial Features

Snap has begun testing commercial features, such as Promote Local Place, to support smaller businesses and retailers on Snap Map. This marks the first instance of businesses being directly featured on the platform.

Future Expansion and Innovation

Snap plans to expand these commercial offerings to larger enterprises in 2021. The acquisition of Pixel8earth suggests a commitment to further innovation and development within its mapping ecosystem.