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How Brands Can Increase Revenue by 62% Using Snapchat for Business

Michael Waters
May 5, 2022
Snapchat's savvy use of augmented reality (AR) helps brands drive sales and reduce return rates. Here are some strategies to utilize Snapchat's AR function.

It's been a big year for Snapchat. In 2021, the social app crossed 500 million monthly users. Of those, 293 million use it every day, up 23% from 2020.

Meanwhile, the company has rolled out a series of new features aimed at a demographic different from Gen Z, millennials, and influencers—businesses. 

Snapchat Is Turning Itself Into a Commerce Hub

The social app has added in-app product catalogs and shoppable mini-apps in the past year. Brands and small businesses on Snapchat can create Public Profiles for Businesses, which let them:

Brands can set up a free Snapchat business account by logging into their Business Manager and selecting Public Profiles.

Snapchat launches multiple eCommerce ad options to help brands drive sales.

Why Should Brands Be On Snapchat?

The biggest differentiator from other video-focused social media platforms—like TikTok and Instagram—might be its clever use of augmented reality (AR). 

On the mobile app, Snapchatters can add AR filters wherever they go. Brands can implement Snapchats AR filters into their digital marketing strategy. By using the various ad formats that users can easily find on Snapchat's Discover feed—like full-screen Snap Ads—brands can drive traffic and brand awareness.

Snapchat has made brands’ filters shoppable. Now brands can create AR filters featuring their products and Snapchat users can digitally experience their products without exiting the app.

Companies like Walmart, Under Armour, and Hollister have released shoppable AR filters in recent months.

Why Use AR Shopping?

In a report published this summer, Snapchat said that 62% of people who tested products in AR were more likely to buy that product after. 

But the biggest benefit for brands, especially sportswear brands, might be cutting down return rates. 

As eCommerce balloons in importance, one of the problems plaguing apparel brands, in particular, is high return rates. Return rates across the board rose 70% in 2020, according to the firm Narvar.  

But Snapchat is trying to solve that problem. In March 2021, Snapchat acquired Fit Analytics, a company that uses AR to digitally display how a product would look on a given user.

The goal is to allow the target audience, e-commerce shoppers, to get an idea of how clothes will fit them before they purchase.

Brands Using Snapchat's AR in Their Social Media Marketing Strategy

Here are some of the sportswear brands using Snapchat's shoppable AR: 

Champs Sports

A division of the retailer Foot Locker, this brand added a suite of new shoes to Snapchat's AR system in the fall of 2020.

Users tap the Champs filter, point their phones at their shoes, and new shoes from Champs appear digitally on their feet. Champs said 8% of daily active users shared photos, videos, or screenshots of their digital Champs shoes to their social networks.

Champs x NIKE Snapchat AR filter.


The brand introduced its AR try-on tool, which gave users the option to test out Puma Suede shoes in gray, blue, and red. According to Snapchat, the ad produced a 9% increase in brand favorability. 

PUMA Snapchat AR Filter.


Meanwhile, Adidas ran an AR Snapchat marketing campaign for its shoe line. The company's metrics said that, in the month following, 18% of its store visitors came because of the Snapchat ad campaign. 

Adidas Snapchat AR filter.


The women's-focused fitness app SWEAT created its own Snapchat filter, in which a silhouette in the overlay demonstrates how to do a workout properly. Users follow the movements of the silhouette to perfect their form.

According to Snapchat, the short video ad brought an 83% jump in sales and conversions for SWEAT.

SWEAT Snapchat AR filter.

How Do You Build AR that Converts?

The one big downside of Snapchat: its AR development software does not integrate with any other apps, and brands need to know the ins and outs of Snapchat's system to build it.

If no one on your staff has that kind of expertise, there are a few ways that brands can invest in AR:

Turn To an Independent Artist

Like the website Lenslist, some online marketplaces connect brands with designers who know how to build sponsored Lenses on Snapchat. Puma, KFC, and Adidas have all worked with Lenslist.

Hire a Studio

Other creative studios, like Poplar, are dedicated to designing professional AR for Snapchat. 

Collaborate With Snapchat's In-House Team

For brands that meet Snapchat's minimum-spending requirements, Snapchat has in-house AR development teams that can craft branded Lenses for companies that plan to run advertising on the app.

Prepare for Inquiries  

Brands who use Snapchat for business should make sure they have teams in place to answer an influx of customer inquiries.

Chatdesk Teams provides knowledgeable customer support teams who respond to customers, ensuring that curious viewers convert into paying customers. Schedule a demo here to see it in action.

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