In an ever-changing digital landscape, Snapchat is making a significant push towards artificial intelligence (AI) and machine learning, aiming to spend a whopping $1.5 billion annually. This move, led by Snap Inc.’s CEO Evan Spiegel, is a strategic effort to not only stay relevant but also to regain its competitive edge.
Acknowledging the Gap in Machine Learning
“There was a recognition that we’d fallen behind the curve on the machine learning side, which, to some degree, was reflected in the business performance,” Spiegel candidly admitted in an interview with Bloomberg News.
He emphasized the necessity for improvement, bringing senior machine learning experts together to brainstorm and innovate toward achieving state-of-the-art AI capabilities.
Snapchat: Transforming Advertising with AI and AR
Snapchat is navigating a shift in social media usage and advertising demands. The platform, once focused on messaging and brand storytelling, is now diving deep into AI, machine learning, and augmented reality (AR). These technologies are being integrated to enhance the user experience and revamp the advertising approach.
“We have never worked on anything as profound and meaningful as augmented reality,” Spiegel remarked during an earnings call. AR is revolutionizing the way digital experiences are integrated into our daily lives, making computing more seamless and interactive.
Engaging Users with Augmented Reality
Snapchat’s AR tools are a hit among advertisers, creators, and users alike. According to Snap’s earnings presentation, over 70% of new users engage with AR on their first day.
Spiegel highlighted the daily engagement numbers, stating, “On average, over 300 million people engage with augmented reality every single day on Snapchat.”
Leveraging Cloud Partnerships for AI Advancements
Instead of building AI tools from scratch, Snapchat is leveraging cloud partnerships with tech giants Amazon and Google. This strategy allows Snap to focus on product innovations and enhancing user experiences while managing the substantial infrastructure costs, estimated at around 84 cents per daily user each quarter.
AI’s Role in Influencer Marketing
The integration of AI in Snapchat extends beyond internal improvements. Social media influencers are also harnessing AI to streamline their processes. Fitness influencer Sara Saffari, with over 2 million Instagram followers, shared insights with PYMNTS on how AI is transforming influencer marketing.
“AI can streamline what used to be a tedious influencer discovery and relationship-building process by creating instant filters, screening for influencer fraud, engagement metrics, and forecasting campaign results,” she explained. This leads to more targeted and scalable campaigns.
Looking Ahead
Snapchat’s commitment to investing $1.5 billion annually in AI and machine learning is a bold move aimed at maintaining its relevance and competitive edge in the fast-evolving social media landscape.
By embracing cutting-edge technologies like AR and forming strategic cloud partnerships, Snapchat is not only enhancing user experiences but also revolutionizing the advertising industry.
