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Snapchat’s AR Enterprise ARES is Disrupting E-commerce: Here’s How

Snap Inc has launched a new division called AR Enterprise Services (ARES) which will allow companies to build augmented reality (AR) features for their websites or apps. This marks the first time Snap is selling its AR technology to business customers. Snapchat AR Enterprise represents an attempt to diversify from digital advertising which currently comprises the majority of its revenue. The new service 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. With this, Snap aims to increase sales and reduce returns.

Snapchat AR Enterprise ARES division now sells AR technology to business customers.

Snap’s Shopping Suite uses AR and AI: Enhancing Snap’s Capabilities

Snap is using artificial intelligence (AI) to advance its Snapchat AR Enterprise. The company is using AI to take a two-dimensional image and make it appear 3D without the need to first build a 3D model. This has helped in reducing the time to create high-quality 3D images from 40 to 60 hours to just a few hours, according to Jill Popelka, head of ARES.

“We’ve proven on our app what we can do. Now we have a real commercial-grade solution,” said Popelka in an interview.

Snap’s focus on AR has been evident in the last few years with over 250 million people engaged with AR every day on Snapchat. The division ARES is expected to help Snap in expanding its reach into the enterprise market, leveraging its proven AR capabilities.

Snapchat AR Enterprise Services’ ARES, Clothing Try-On Product.

Snapchat AR Enterprise’s Disruptive Pricing Model

The pricing model for Snap’s business customers will be “very flexible,” said Popelka. Certain arrangements with clients could allow Snap to earn a cut of product sales driven by Snap’s AR tools. With the introduction of ARES, Snap has become a competitor in the AR enterprise space. Additionally, it has become potentially challenging to established players such as Adobe and Unity Technologies.

Snap’s initiative to sell its AR technology to business customers indicates a shift in the company’s business model. It has been largely reliant on digital advertising revenue recently.

By entering the AR enterprise space, the company has the potential to be a game-changer. The company can provide business customers with a unique opportunity to leverage Snap’s AR capabilities to drive sales and growth.

Source: Reuters

Joygill Moriah

Cofounder of Hybrid Rituals. Founder of GLIMPSE. Digital Art & trends researcher.

Cofounder of Hybrid Rituals. Founder of GLIMPSE. Digital Art & trends researcher.