- Snap, the company behind Snapchat, is boosting its investment in AI and machine learning.
- CEO Evan Spiegel acknowledges a previous lag in machine learning efforts impacting business performance.
- Snapchat is reallocating resources to enhance AI capabilities and embrace augmented reality (AR) features.
- Strategic partnerships with Amazon and Google for cloud services enable focus on innovation.
- Despite external cloud services, Snapchat plans substantial infrastructure spending, totaling $1.5 billion annually.
- AI is revolutionizing influencer marketing, streamlining processes and enhancing campaign effectiveness.
Main AI News:
Snap, the parent company of Snapchat, is ramping up its investment in artificial intelligence (AI) and machine learning, according to CEO Evan Spiegel. Spiegel acknowledged a lag in their machine learning efforts, which impacted business performance. To address this, the company is intensifying efforts and assembling top-tier talent to enhance their AI capabilities. This move is strategic, considering the evolving landscape of social media usage and advertisers’ preferences.
Historically, Snapchat prioritized messaging, with advertisers emphasizing brand storytelling over direct sales. However, with shifting trends, Snapchat now directs resources toward AI, machine learning, and augmented reality (AR) features to bolster its advertising business and user engagement. Spiegel emphasized the significance of AR, highlighting its potential to seamlessly integrate digital experiences into everyday life.
Snapchat’s AR tools have garnered substantial adoption among advertisers, creators, and users. Notably, over 70% of new Snapchat users engage with AR on their first day, demonstrating the platform’s immersive appeal. Spiegel underscored the scale of AR adoption, with over 300 million daily users interacting with augmented reality features.
Rather than developing AI tools internally, Snapchat has opted for strategic partnerships with tech giants like Amazon and Google for cloud services. This approach allows Snap to focus on product innovation and enhancing the Snapchat experience. Despite leveraging external cloud services, the company remains committed to substantial infrastructure spending, allocating approximately $1.5 billion annually, equivalent to 84 cents per daily user each quarter.
AI’s transformative potential extends beyond enhancing user experiences to optimizing influencer marketing. By automating influencer discovery, fraud detection, and campaign forecasting, AI streamlines the influencer marketing workflow, enabling more targeted and scalable campaigns. Sara Saffari, a prominent fitness influencer, attests to AI’s role in refining influencer campaigns, facilitating better targeting and evaluation, ultimately driving enhanced results.
Conclusion:
Snapchat’s substantial investment in AI signifies a strategic shift to stay competitive in the dynamic social media landscape. By leveraging advanced technologies like AI and AR, Snapchat aims to enhance user experiences and advertising effectiveness. This move also underscores the growing importance of AI in influencer marketing, signaling a paradigm shift in how brands engage with audiences. Market players should take note of Snapchat’s proactive approach, as it sets a precedent for integrating cutting-edge technologies to drive business growth and innovation.
