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Snapchat launched an image-recognition feature that recognizes what users are snapping photos or videos of and provides contextually relevant filters, Mashable reports.
For example, if a user takes a picture of a beach, filters that say "ocean view" or "hang loose" will automatically appear in the user's carousel of filters.
The categories that currently work with the feature include concerts, beaches, food, pets and sports, though Snapchat will likely add more.
The new feature isn't Snapchat’s first foray into image-recognition technology.Snapchat launched Search for Stories, which lets users search for publicly available Stories based on objects in snaps, by using the in-app search bar. Users can also search for specific snaps or objects that appear in their Memories, or snaps that are saved in-app.
Snapchat’s image recognition-based filters can boost the company’s lagging ad business in a couple of ways:
- Snapchat can partner with brands to serve users sponsored image-specific filters, generating additional ad revenue for the company. The company could partner with a clothing company to serve a branded filter when users take a picture of a jacket, for example. Snap could also use image-recognition filters to help drive foot traffic to local businesses. For instance, the company could create specific filters for restaurants that appear when users snap their food. Restaurants could also offer users discounts for snapping pictures of food using sponsored image-specific filter before checking out. This could incentivize visits and boost sales for local businesses.
- The massive amount of daily snaps make sponsored image-specific filters a huge monetization opportunity for Snapchat. Users create over 3.5 billion snaps per day on the platform. Further monetizing these snaps would allow the company to raise its average revenue per user (ARPU), which stood at $1.20 globally in Q3 2017. Snapchat is focused on creating new ad units to hedge against losses associated with a slowing growth rate of users and declining prices of Snap Ads, which are the company’s vertical video units. Snapchat’s daily active users (DAU) grew 3% in Q3 2017 from the previous quarter, down from a 4% growth rate in Q2 and 5% in Q1. Additionally, in Q3 2017, the average price for a Snapchat ad decreased 60% YoY and 20% from the previous quarter.
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