Here's how Snapchat's business benefits from its new mapping feature (SNAP)

BI Intelligence

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On Wednesday, Snapchat owner Snap launched a feature that lets users pull up a map that shows where Stories are being posted locally and around the world. 

Dubbed “Snap Maps,” the location-based feature mimics the functionality of Zenly, a French location-sharing app, which Snap quietly acquired in May.

The inclusion of an in-app map could help drive greater engagement on Snapchat, and enable Snap to better compete against the ever-present threat of Instagram and Facebook. 

The use of location data is not necessarily new to Snap — it’s an integral part of Snapchat’s popular Geofilters and stickers. However, the mapping feature could have the added benefit of surfacing multiple points of interest for a user to choose from, rather than offering a single sticker or filter based on location.

Snap Maps could help Snapchat on three primary fronts:

• It could add personalization to the platform. Sorting content by a user's location is an effective way for apps to cut through the overwhelming amount of information that's saturating their feeds. Offering more contextual and relevant content could also help boost engagement rates.
• Snapchat could become more valuable to local businesses. For example, local businesses could pay to be visible on an app’s map when they’re in the vicinity. This can significantly boost a business' foot traffic — a 2014 study by Google found that 50% of consumers who conducted a local search on their phone visited a store the same day. Given the growth of smartphone ownership, that percentage has likely increased since.
• It could provide an alternate revenue channel. Marketers can use location data to better target users with notifications and contextual advertising. In the US, location-targeted mobile ad spend is projected to reach $16 billion in 2017 and grow at an annualized rate of 19% to reach $32 billion by 2021.

Of course, Snap isn’t alone in its efforts to leverage mapping and location data. Facebook has long been adding location data to its portfolio of apps to improve the user experience; its chat app Messenger supports a map that can show nearby bars, restaurants, and points of interest. However, given that Snapchat users are already comfortable using location to add Geofilters to their images and videos, Snap could have a leg up when it comes to consumers trusting apps with their location data.  

Laurie Beaver, research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on the battle for the smartphone camera that:

• Describes how smartphone cameras are being leveraged by chat apps.
• Explains the how brands and businesses can take advantage of cameras on messaging apps.
• Highlights the differences between certain messaging apps and their strengths and weaknesses.
• Looks at the potential barriers that could limit the adoption and use of chat apps’ cameras.

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