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AR and VR: How Snap Inc.Generated $2.3 Billion AR and VR Advertising Revenue


  • Augmented reality (AR) and virtual reality (VR) technologies are no longer just for gamers and tech enthusiasts. Businesses are now using these immersive technologies to enhance customer experiences, increase engagement, and drive sales.
  • The success of Snap Inc. in generating $2.3 billion in advertising revenue from AR and VR technologies is a prime example of how founders can leverage these technologies to unlock new business opportunities.
  • AR and VR are also being used in other industries, such as healthcare, education, and retail, to provide training, enhance customer experiences, and improve efficiency.

What are AR and VR, and How Do They Work?

Augmented reality (AR) is a technology that overlays digital information, such as images and text, onto the real world. This is typically achieved using a smartphone camera, which captures the real world and displays the digital overlay on the screen. Virtual reality (VR), on the other hand, immerses the user in a completely virtual environment, typically using a headset that blocks out the real world.

AR and VR technologies track the user’s movements and adjust the digital content accordingly. This creates a seamless integration between the real and virtual worlds, allowing users to interact with digital content in a more natural and intuitive way.

How Can AR and VR Technologies Be Used by Founders?

AR and VR technologies can be used by founders in a variety of ways to enhance their businesses. Here are a few examples:

  • Product demonstrations: AR and VR technologies can be used to create interactive product demonstrations, allowing customers to see and experience products in a more immersive way.
  • Virtual showrooms: Founders can create virtual showrooms that allow customers to browse and purchase products from anywhere in the world.
  • Training and education: AR and VR technologies can be used to create interactive training and educational materials, allowing employees to learn in a more engaging and effective way.

How Did Snap Inc. Generate $2.3 Billion in AR and VR Advertising Revenue?

Snap Inc., the parent company of Snapchat, has been at the forefront of AR and VR advertising. The company has been using AR and VR technologies to create engaging, interactive ads that resonate with users. This has resulted in a significant increase in advertising revenue, with the company reporting $2.3 billion in AR and VR advertising revenue in Q1 2023, an 87% increase from the previous year.

Snap Inc.’s success can be attributed to its innovative approach to advertising, which focuses on creating immersive and engaging experiences for users. By incorporating AR and VR technologies into its advertising platform, Snap Inc. has been able to differentiate itself from competitors and provide a unique value proposition to advertisers.


AR and VR technologies can potentially transform how businesses operate and engage with customers. As demonstrated by Snap Inc.’s success, founders who embrace these technologies can unlock new business opportunities and gain a competitive advantage in their respective markets. By incorporating AR and VR technologies into their marketing strategies, founders can create more engaging and effective customer experiences, ultimately driving growth and revenue.


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