Snap Inc. has been quietly—and sometimes not so quietly—building an ecosystem that goes beyond just disappearing messages. Snap’s push into augmented reality is especially intriguing. They’re turning AR filters into a valuable e-commerce tool, letting users virtually try on products before buying.
The latest Bloomberg piece details how brands are leveraging Snap’s AR to market directly within the app. This is a win-win: Snap fosters user engagement and generates advertising revenue, while brands get innovative ways to showcase their products. Sure, competition from TikTok is fierce, but Snap’s approach feels more like a curated experience than a free-for-all feed.
Does Snap’s daily active user count rival Facebook’s? Not yet. But it doesn’t have to. Its user base skews younger and is highly engaged. Advertisers pay a premium to reach that audience, which is exactly why I’m still holding SNAP shares. The platform’s unique approach to AR is something I believe will pay off massively in the coming years.
I also see Snap as a potential acquisition target—though I suspect they’re aiming for independence. Their rapid feature rollouts, like Spotlight (a TikTok competitor), show they’re not afraid to evolve. If management continues to innovate while balancing user privacy and monetization, Snap could become an unexpected heavyweight in the social media space. As the holiday season approaches, I’m keen to see how AR-driven shopping campaigns play out.