Verizon has announced a tie-up with Snap to deliver augmented reality (AR) features and experiences in the 5G labs.
As part of the agreement, the duo will work in Verizon’s 5G labs to create AR experiences for live experiences and marketing initiatives. The deal will also see the Snapchat app preinstalled on some Verizon 5G devices, while the telco will also receive marketing placements within Snap Originals video series.
“5G will change the way people live, work and play and we’re partnering with leading companies like Snap Inc. to create unique experiences and new offerings,” said Frank Boulben, VEP of Marketing & Products at Verizon. “Our strategy is to partner with the best brands to ensure our customers have exclusive access to cutting edge technology and services.”
“Major advances in high-bandwidth experiences are fueling the future of augmented reality,” said Jared Grusd, Chief Strategy Officer of Snap. “We are thrilled to partner with Verizon to move the industry forward through the development of creative and innovative 5G experiences on Snapchat.”
While many in the industry have been focusing on enterprise customers to drive genuine innovation in a 5G era, the consumer-orientated telcos in the US are attempting to squeeze out benefits for the general public. AR, alongside virtual reality, is a usecase which has long been touted as a game-changer in the 5G world, though reservations still persist.
For Snap, this is a deal which lives up to the promise made in recent earnings calls.
“We have a significant lead in augmented reality due to the camera-first nature of Snapchat and the frequent usage of our camera, and we believe that smartphone-based augmented reality will be an important driver of our business over the coming years,” said Snap CEO Evan Spiegel last month.
“We have been investing heavily in tools like Lens Studio to help creators build augmented reality experiences and evolving the ways that we distribute Lenses to our community through products like Scan and our AR Bar. Even though augmented reality is a relatively new technology, it provides real utility for our community and real results for our advertisers, making it a natural growth opportunity for Snap.”
Although some of the older generations might be confused by Snapchat as an application, it is started to gather momentum. It is now one of the most popular social media apps worldwide, while the revenues are started to build-up. During the last quarter, revenue increased 50% year-over-year to $446 million, still someway off its rivals but growth is still growth.