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SNAP & MTV Team up to Revolutionize VMAs' Voting With Lenses

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Snap Inc. (SNAP - Free Report) collaborated with MTV to allow users to vote for a Video Music Awards (VMAs) category through Lenses. This collaboration involves the integration of augmented reality (AR)-based experiences into the award show, leveraging Snap's Camera Kit.

Once the three finalists for the Best New Artist category are determined, users can participate in voting by using a unique Lens created by Saucealitos. This Lens allows them to select an artist by signaling one, two, or three using their fingers. These votes will contribute to the final count, although it remains uncertain whether Snapchat’s vast user base will significantly impact the results.

MTV mentioned that an AR Moonperson will be featured throughout the POV VMA livestream, incorporating fan-submitted selfies. The entertainment company opted for a traditional method of having individuals submit selfies using a form prior to the event.

Snapchat is focusing on utilizing branded and AR-driven camera solutions as a key strategy to boost its revenues. In March, the company introduced its AR Enterprise Services (ARES) offering, which includes features like AR Try-On and 3D product visualization tools. In April, Snap unveiled the AR Mirrors product within the ARES framework, allowing brands to incorporate their technology into physical environments. This is expected to boost the company’s daily active users (DAUs) as well as revenues in the upcoming quarters.

The Zacks Consensus Estimate for SNAP’s 2023 DAUs globally is pegged at 412.85 million, indicating year-over-year growth of 121.9%. The Zacks Consensus Estimate for revenues is pegged at $4.5 billion, indicating a year-over-year decline of 2.16%.

Snap Inc. Price and Consensus

 

Snap Inc. Price and Consensus

Snap Inc. price-consensus-chart | Snap Inc. Quote

Snapchat Faces Competition in AR Advertising Market

Snapchat, being a leader in the AR advertising market, is experiencing a stiff competition from giants like Amazon (AMZN - Free Report) , Meta Platforms (META - Free Report) and Google (GOOGL - Free Report) .

Amazon is embracing AR to attract sneaker enthusiasts who shop on its platform. The company recently introduced a feature called Virtual Try-On for Shoes, enabling customers to use its mobile phone's camera to visualize how a pair of shoes will appear on them from various angles. AMZN believes that this feature will enhance product presentation for brands and assist customers in making an informed purchasing choice.

Meta recently revealed that it is introducing AR to Reels Ads and Facebook Stories as part of its appeal to advertisers. This update enables brands like Sephora, Tiffany & Co. and others to provide more immersive experiences and AR filters when marketing to Meta's audience, including the younger Gen Z users. Additionally, META mentioned the introduction of various enhancements and improvements to Reels Ads and highlighted that brands can now collaborate with third-party measurement partners for their Reels Ads campaigns.

Google has revealed its experimentation with a unique AR Try-on feature within Google Shopping listings. This tool will empower brands to offer digital overlays, starting with make-up products, so that potential customers can see what they’ll look like wearing a listed item.

Snapchat is a front-runner in this market mainly because of its young user base, which is also the primary target for AR advertisement. Additionally, due to its affordable pricing, it is an attractive pick for the customers.

Shares of this Zacks Rank #3 (Hold) company have gained 5.5% in the past year compared with the Zacks Computer and Technology sector’s rise of 38.7% due to weak revenues reported in the previous quarter. SNAP’s growing AR advertisement efforts are expected to drive the company’s performance in the upcoming quarters. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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