Snapchat needs to buckle up and look for new opportunities in AR development in view of the competition from Meta and Apple. Exploring the new AR development elements will also help the platform to optimize its revenue potential.
Not capitalizing on the revenue potential has been a problem for Snapchat in recent times. So, despite the popularity of the platform among youngsters, it struggles with the rising costs of the platform. So, even with an addition of 30 million new users and reaching 400 million DAU, Snapchat had to part ways with many employees and cancel many of its advanced projects.
The platform’s lack of growth in Europe and North America is majorly responsible for the financial instability of the platform. In these two regions, the platform earns the highest revenue per user basis. Snapchat has made a comeback with its Snapchat+ subscription, having 7M paid members. However, the number earned through this subscription is not enough considering the revenue potential of the platform.
With a 7M subscription for Snapchat+, the platform is likely to garner around $81M for every quarter. The revenue for the Q3 this year has been $1.189 billion. So, Snapchat now needs to focus on its strengths, considering this platform has been the trailblazer of many AR trends in recent times.
In other words, Snapchat can be the best place to capitalize on the users’ interest in augmented reality or AR. In the process, AR wearables can be the first step to help users enjoy the best AR experience. So, Snapchat is likely to come up with its own range of AR glasses. The platform already has a limited range of AR spectacles up for testing.
AR glasses are something that Snapchat has been working on for around 2 years. However, the revenue restraint and cost hike have caused protraction in the release of these glasses. With the release of these spectacles, a new horizon is likely to be opened for Snapchat.
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