Dive Brief:

• In a bid to bolster its augmented reality cred, Snap Inc. is introducing a new Snapchat feature called “world lenses,” according to Business Insider.
• The technology uses the back camera of mobile devices to overlay virtual visual effects on users’ surroundings, such as smiling clouds that puke rainbows.
• Snap Inc.'s push into developing better AR tech also includes the upcoming camera-equipped sunglasses called Spectacles — the first piece of hardware from the company.

Dive Insight:

A key component of Snapchat's identity has been the AR filters it can overlay on video messages, but more companies like Facebook and even Twitter's Periscope have been cribbing its content model and testing similar tech. If Snapchat can't be the unique provider of virtual augmentations in the social video space, it might need to be the best one, and the 'world lenses' are another step forward as the competition tries to catch up.  

The power of AR tech to command user engagement was made clear this summer when Pokemon Go became an instant hit. At its peak, the Nintendo/Niantic app commanded more than 1 billion interactions on Facebook and Instagram, demonstrating consumer interest in the tech is huge.

Brands have also been able to take advantage of Snapchat filters and geotags for promotional purposes, and world lenses could tie neatly in with other offerings like Snap to Unlock ads, which essentially serve the same purpose as QR codes. 

While Snapchat’s capabilities — including the world lenses — might seem a small diversion at the surface level, Snap Inc. might be able to position itself as an industry leader, joining bigger tech companies like Apple and Microsoft, as well as startups like Magic Leap, in leading AR development. Snap Inc.'s play for hardware like Spectacles, and its rebranding as a camera company on top of a social media one, has recently drawn the attention and investments of players as big Alphabet, Google's parent company. Snap Inc. is also preparing for an initial public offering of its stock that could infuse the company with capital to make further investments in AR.