Snap Inc, the parent company of Snapchat, has launched a new division called AR Enterprise Services (ARES) to sell its augmented reality (AR) technology to businesses. ARES will provide AR tools to companies to build features for their websites and apps. The launch of ARES marks the first time Snap will sell to business customers its AR technology.
Snapchat’s AR technology can enhance photos and videos of the real world with computerized images. Over 250 million people engage with AR every day on Snapchat. ARES’ first product, called Shopping Suite, will provide tools for companies to build features that allow customers to virtually try on clothes or view a product from all angles in 3D. This could help increase sales and reduce returns.
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Snap is seeking to diversify its revenue beyond digital advertising, which currently comprises the majority of its revenue. The pricing model for business customers will be “very flexible”, according to Jill Popelka, head of ARES. Certain arrangements with clients could allow Snap to earn a cut of product sales driven by Snap’s AR tools, she added.
