Snapchat Aims to Increase Revenue with New Ad Format
In a recent patent filing by Snapchat, they outline their goals for a new type of ad format.
Here’s how the new ad format will work: Snapchat’s augmented/virtual reality technology will be able to recognize the objects in your snaps in real time. So if you’re looking at a coffee mug, Snapchat will be able to know that. They will also enable real-time bidding to advertisers and let them bid to provide you with sponsored filters immediately. So your picture of a coffee mug can now have a Starbucks or Dunkin Donuts filter on top of it. Take a look at this image for details:
That image explains how this might work. This is sort of the visual equivalent to Google offering ads based on keyword searches.
In the patent application, Snapchat mentions how object recognition “provides a compelling way for users to personalize, supplement and enhance” their snaps.
Although this is just a patent application, it’s a logical progression in Snapchat’s advertising model. Just a few months ago, the company stated that it wants to at least 10x its revenue from last year to next year. This would go a long way to accomplishing that goal.
We will keep you updated as details emerge.