Snap Inc. (SNAP) is courting advertisers by rolling out promotional Lenses that enable users to superimpose corporate logos on their photos and videos as it aims to boost revenue dollars, reported Bloomberg. Unlike the platform's popular filters, these new Lens ads don't have to be used on images or video depicting faces.
An example of this was seen on Cinco de Mayo when Snapchat teamed up with Taco Bell to let users turn themselves into mini tacos in their photos. People familiar with the matter told Bloomberg a campaign like the one with Taco Bell typically goes for $300,000 to $700,000, but a national advertising effort could cost as much as 30% more, which would be a boon for Snap. The company is also willing to sell Lens ads for smaller audiences for the first time, according to the report. (See more: Snap Results Bring Out Twitter Comparisons on Wall Street)
One of the first companies to use the new lenses is Warner Bros. Entertainment and MGM Studios, which are releasing the new teen romance “Everything, Everything” on May 19. Snap users will be able to film a video with a border of suns, clouds and a flowery vine with the words “Everything Everything” written in the corner. Blair Rich, Warner Bro.’s president of worldwide marketing, told Bloomberg the promotion gives the movie studio the ability to test augmented reality as an advertising tool. “Everyone who works within this space knows that AR is a key component of the future,” Rich said in the interview. Snap is also adding a new geographic filter to the promotion so high schools can add their names. Other new lenses will enable movie fans to add characters and interactive cartoon clouds to their images and videos or play games.
Snap told Bloomberg it’s teaming up with the creative teams of big advertising firms to create the campaigns for household brands, taking months to develop something that is unique. The idea is to have something different for advertisers, but it remains to be seen if and for how long Snap will have the upper hand. Social media rival Facebook (FB) has been known to copy Snap and could come out with its own augmented reality ads. What’s more, it’s not clear if these promotional lenses will drive new traffic and sales for the advertisers or if it’s something fun for Snap users to play with but little more than that. (See more: Snap Beats Facebook to Geofilter Patent)