Snapchat Enhances AR Shopping with Real-Time Pricing & Details

Snapchat Enhances AR Shopping Capabilities with Real-Time Updates

Snapchat is currently implementing upgrades to its augmented reality (AR) shopping functionality. These improvements encompass both the Shopping Lenses within the social application and the analytical data provided to Snap’s brand and retail collaborators.

Enhanced Features for Consumers

The AR shopping experience is becoming more user-friendly. Key product details, such as current pricing and available colors, are now displayed in real-time.

Users will also find product descriptions and direct purchase links on new Lens Product Cards while virtually trying on items.

Data-Driven Insights for Brands

Updates for brands center around providing more comprehensive data regarding the performance of their AR shopping features.

These analytics are delivered in real-time, as the AR Shopping Lenses are now directly connected to the company’s product catalog. This allows for more immediate insights.

Impact on Research and Development

Brands and marketers can leverage this data to refine their research and development plans. They can also identify which products are most appealing to Snapchat’s predominantly younger demographic – Gen Z and millennials.

This information can then be applied to optimize ad targeting and inform future product development decisions. Snap emphasizes that the data also aids in optimizing Shopping Lens delivery to users most likely to purchase.

Successful Beta Testing Results

Prior to the public release, Snap conducted beta testing with brands like Ulta Beauty and MAC Cosmetics.

Ulta Beauty reported $6 million in additional purchases and over 30 million product try-ons within a two-week period using these “catalog-powered” Shopping Lenses.

MAC Cosmetics observed 1.3 million try-ons at a cost of $0.31 per trial, alongside a 17x increase in purchases among women, a 2.4x boost in brand awareness, and a 9x increase in purchase intent.

Interactive AR Shopping Experience

Users can utilize swipes and gestures to explore various AR product options. This allows them to visualize how makeup, clothing, jewelry, and accessories would appear on themselves.

The system provides a technologically advanced alternative to traditional in-store try-ons, benefiting both online-only brands and traditional retailers seeking to engage a younger, digitally-focused audience.

Streamlined Lens Creation Process

Snap is simplifying the creation of AR Shopping Lenses. A free web creation tool was launched last year, but lacked dedicated shopping templates.

Now, the company states that AR Shopping Lens creation can be completed in as little as two minutes with a few clicks, initially for beauty brands. Further updates for other shopping categories are planned.

Brands can still utilize Snap’s Lens Studio to build their AR lenses if desired.

Investment in AR Shopping Technology

Snap has been significantly investing in its AR shopping business, aiming to integrate shopping more deeply into the Snapchat experience.

Recent upgrades to the computer vision-powered Scan feature allow users to scan items with their phone’s camera to access product information, including ingredients and related recipes.

The acquisition of Fit Analytics, a startup focused on online clothing and shoe fitting, for $124 million, further demonstrates this commitment.

Snap also established Arcadia, a creative studio dedicated to commercializing its AR technology for use across various platforms.

Positive User Engagement with AR Try-On

Data from Snap indicates strong engagement with AR try-on features among its younger user base.

During a beta test involving over 30 brands, Snapchat users virtually tried on products more than 250 million times.

AR try-on has also been linked to a 2.4x higher purchase intent and a 14% increase in sales compared to video advertising spend.

Over 200 million Snapchat users engage with AR features daily, including those beyond shopping.

Snap’s Vision for the Future of Shopping

“Augmented reality is changing the way we shop, play, and learn, and transforming how businesses tell their stories and sell their products,” stated Jeremi Gorman, Snap’s chief business officer.

“Starting today, our revamped AR Shopping Lenses will mean a more engaging experience for our Snapchat community, and enable a faster, easier way to build Lenses for businesses — directly linking Lenses to existing product catalogs for real-time analytics and R&D about which products resonate with Gen Z and Millennial audiences.”

Competitive Advantage and Revenue Growth

These AR improvements may position Snap to compete more effectively with larger social media platforms that have not prioritized AR-enabled shopping to the same extent.

Snap also anticipates that its Lens targeting capabilities will contribute to increased ad revenues, which were impacted by Apple’s privacy changes and resulted in missed revenue expectations in the previous quarter.

The company reported $1.07 billion in revenue for Q3 2021, falling short of the $1.10 billion forecast, leading to a 22% stock decline. Snap will announce its Q4 and full-year 2021 earnings on February 3, 2022.