Snapchat has launched two new ways to increase revenue with advertising this week with Promoted Stories and also a new AR Trial Ads program. The social media service is hoping these new ads will be skipped less by users and will give the company a leg up on Facebook/Instagram.
Snapchat has hit a string of challenges lately as the company reportedly has hundreds of thousands of unsold units of its Spectacles and also only added 4.5 million users in Q3 2017 compared to expectations of 8 million, along with missing revenue by $30 million. Its ad rates also recently dropped 60% year over year.
Earlier this month, the company announced that it will be launching a disruptive new design that may negatively impact its business in the short-term, but should be beneficial in the long-term. Snapchat shared a bit more information about the design a day later along with a launch date of December 4th.
Now, TechCrunch reports the company has launched two new ways to create more revenue with Promoted Stories and the AR Trial Ads program.
“Our advertising partners have been asking for ways to tell deeper stories on mobile” Snap’s Director of Revenue Product Peter Sellis told TechCrunch in a statement.
Some of the early buyers for Promoted Stories include HBO with Game Of Thrones spots. These new ads allow advertisers to use between 3-10 photos to create a more rich experience. TechCrunch notes they have a short of “mini magazine-esque Publish Story” feel.
Snapchat is hoping that the new format will hook users by providing engaging content after they swipe past the first Snap of an Ad. The company says it will be able to reach 88 million people in the US with Promoted Stories.
As for Snapchat’s AR Trial Ads, it’s based on the social media service’s World Lens feature. There doesn’t seem to be a mention of whether Snapchat has utilized Apple’s ARKit, but companies are able to create immersive experiences for users similar to what we’ve seen with in iOS 11.
BMW is one example, allowing Snapchat users to place vehicles in their environment, resizing, and walking around different models. Snapchat and advertisers are hoping to get even more exposure if users share their AR ad experience with others in private messages or Stories.
Snapchat is a free download from the App Store.