Jtechnologically, TikTok and Snapchat (NYSE: SNAP) continue to create intriguing products and tools to grow their users. In this video clip from “The Virtual Opportunities Show” on Motley Fool Live, recorded on April 12Fool.com contributors Travis Hoium, Demitri Kalogeropoulos and Jose Najarro take a look at some recent developments in augmented reality that will be worth watching in the future.
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Travis Houm: Yeah. TikTok, not public but big competitor of Facebook therefore part of Meta (NASDAQ:FB) but the Facebook and Snap SNAP suite of products) as well. They have officially launched their augmented reality development platform called Effect House.
Let me pop this up to show you exactly what it is. Here you can see some of the things the developers have done and to be clear this is a development tool. Just like Snapchat, if you go to Snapchat and you have these funny faces that you can do, a developer has to do it, someone has to make that product. They did similar things, a bit on Snapchat. Instagram also has similar tools. But you can develop these products and basically allow users to use them.
This is another case, a model similar to what Snapchat did, where they put the tools in the hands of the developers, and then the developers build things that the users use. The social network or platform is in the middle and both groups are increasing their usage. The other thing that I think is interesting about our topics is that augmented reality is becoming very commonly used in many of these social media platforms.
It will be interesting to see where this goes if this is something that advertisers use more in the future. If it’s something that we actually find useful in some way. But the fact that the tools are coming out, that the developer tools are being built and progressing on these platforms, I think that’s really encouraging for augmented reality as a whole.
Again, it’s one of those technologies that’s on our phone that we don’t necessarily think about because it’s just hidden away. It’s not like a VR headset where it’s a separate device you have to put on. It’s in the AR kit. It’s right there if you have an iPhone or similar with an Android device. Really interesting technology and I think Demitri, you were potentially going to cover another head start for TikTok in their battle against all other social media networks.
Demitri Kalogeropoulos: Yeah, just add it quickly and then I’ll have Jose on that track today. I think it was yesterday afternoon. As you mentioned, it’s not a public company, so we don’t know much about their finances, but we do have an estimate based on new research released yesterday that they put TikTok’s potential ad revenue at $11 billion in 2022 based on a third-party estimate, which it says would put it above Twitter and Snap’s total advertising combined.
I know the user base is massive on TikTok, the engagement is really big and a lot of big companies are nervous like Facebook and Instagram. Facebook which recently reported reductions in its average daily users. TikTok is definitely the big growth story there. But yeah, what do you think Jose?
Jose Najarro: I think it’s amazing how AR technology is now moving away from just social aspects. I have been new to Snapchat, please allow me to share my screen very quickly. Snapchat has released a new AR lens that can help people learn sign language. I think Snapchat is definitely one of the leaders here. The goal with their strong technology. It’s cool to see them go from just adding cool images or cool effects to the user to now becoming a form of educational tool. So excited to see where this technology goes in the future.
Travis Houm: It’s a really cool use case. This is the thing where I think it’s a little hard to understand because so often with these, especially when these things are launched on social media, the initial use cases are just completely unnecessary. It’s just my kids making funny faces and turning their heads into cats or whatever.
But the fundamental underlying technology is truly amazing. It will take some time to figure out which are these use cases that will add value to the world in the long run and who is going to fund them.
I think Rachel talked a few weeks ago about medical technology and some of the interesting things going on there. It’s a, it’s like we know what we have from a technology standpoint today, but getting it into people’s hands takes a long time. Sometimes instant gratification is silly, but the long-term impact is much deeper. It just often takes years to really show up.
Randi Zuckerberg, former director of market development and spokesperson for Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is a board member of The Motley Fool. Demitri Kalogeropoulos holds positions at Meta Platforms, Inc. Jose Najarro holds positions at Meta Platforms, Inc. and Snap Inc. Travis Hoium holds positions at Snap Inc. The Motley Fool holds positions and recommends Meta Platforms, Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.