Snap Store
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Snapchat is doubling down on its biggest differentiator by turning its personalized avatar Bitmoji into a revenue stream and a new source of content. Snapchat is launching a Bitmoji merchandise store you can customize with you and your friends’ cartoonified faces, Bitmoji Stories comic strips featuring you and friends’ avatars in fun scenes and a new Friendship profile that collects all the content you and a friend have saved from your Snap message thread.
The new features could help earn Snapchat money to reduce its still-massive quarterly losses, get Snap’s brand out in public and give people new ways to spend more time on Snapchat when it’s otherwise been losing users.

The Bitmoji merchandise store opens Thursday in the U.S. on iOS only with $2 stickers, $15 coffee mugs, $16 standard t-shirts and notebooks, $22 triblend t-shirts, $27 sweatshirts and more that users can personalize by adding their Bitmoji, one of their friends’, them and a friends’ playing together, or any two of their friends. Phone cases, towels and pillows are also available. You can access the Bitmoji store from Snap Store in the Settings menu of Snapchat’s app. Snapchat first launched its Snap Store in Ghostface Chillah logo merchandise back in February to sell Dancing Hot Dog dolls, ghost pool floats and puppy selfie-filter shirts.

The new merch could help Snap show off its name and brand, reminding people to use the app as they can’t get the true Bitmoji anywhere else. Snap could also use the revenue given that it lost $325 million last quarter and might have to take outside investment or be acquired as it may not break even before running out of cash.
Back before it settled on the idea of turning personalized emoji into stickers you could use in chat, Bitmoji parent company Bitstrips started as a comic strip creator. You could make an avatar and then create little scenes for them to star in. The idea was inspired by co-founder Jacob “BA” Blackstock’s school days when he and friends would draw comic strips when they were bored. Now Snap is getting back to Bitmoji’s roots.

Bitmoji Stories launch tomorrow in the U.S. A Snapchat spokesperson tells me “Bitmoji Stories will tell lighthearted stories in the form of short comic strips. Bitmoji Stories are created by Snap (from the Bitmoji content team), and will star the Snapchatter solo or with a friend.” They’ll be constantly updated with new adventures, and they’re quite reminiscent of lifelike avatar startup Genies’ scenes. By creating a new form of Discover content in-house, Snapchat could draw more time and therefore more ad views out of its audience. And because there’s no outside publisher to pay, Snapchat can keep all the ad revenue.
Snap’s big competitors have largely failed to field a viable Bitmoji competitor. A year ago I wrote that “Facebook seriously needs its own Bitmoji,” and in May, we broke the news that Facebook Avatars were in the works — though the prototypes were pretty ugly. Each day Facebook delays, Bitmoji becomes more entrenched as the avatar standard. Two weeks ago, Google launched its own Gboard Mini avatars that you can automatically create with a selfie, rather than having to configure them manually like on Snapchat. But when it comes to an illustrated version of you, even tiny missteps can make you look monstrous. Plus, people love wasting time customizing avatars. Snap’s version still reigns supreme.
And lastly, today Snapchat begins globally rolling out its Friendship profiles. Accessible by clicking on a friend’s Bitmoji (or blank avatar if they haven’t made one) from Chat, Stories, Discover or search, Snapchat says they “make it easy to find your favorite memories and the important information you’ve saved over time.” That includes, photos, videos, messages, and links saved from your otherwise ephemeral chats, plus a quick way to see that bestie on the Snap Map.

None of these features is so seismic as to change the overall momentum of Snapchat, which has been struggling lately with shrinking user counts, a battered share price and non-stop executive departures. Its VP of Content Nick Bell left yesterday. Having talked with him, he’s one of the smartest minds in modern mobile content, and Snap’s hopes to get rid of the clickbait and messy design of Discover may be more difficult without him.
The strategy of focusing on best friends is smart, though. The one thing Facebook and Instagram can’t copy is Snapchat’s tight social graph of just your closest pals. Those competitors allowed their networks to bloat with acquaintances, family and colleagues that can make people less comfortable openly sharing. Now that they’ve copied Snapchat’s Stories broadcasting to a wider audience, Snap must refocus on best friends if it wants to stay unique and turn its smaller size and graph into an asset instead of a liability.
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Snapchat is building a visual product search feature, codenamed “Eagle,” that delivers users to Amazon’s listings. Buried inside the code of Snapchat’s Android app is an unreleased “Visual Search” feature where you “Press and hold to identify an object, song, barcode, and more! This works by sending data to Amazon, Shazam, and other partners.” Once an object or barcode has been scanned you can “See all results at Amazon.”
Visual product search could make Snapchat’s camera a more general purpose tool for seeing and navigating the world, rather than just a social media maker. It could differentiate Snapchat from Instagram, whose clone of Snapchat Stories now has more than twice the users and a six times faster gro
wth rate than the original. And if Snapchat has worked out an affiliate referrals deal with Amazon, it could open a new revenue stream. That’s something Snap Inc. direly needs after posting a $385 million loss last quarter and missing revenue estimates by $14 million.

TechCrunch was tipped off to the hidden Snapchat code by app researcher Ishan Agarwal. His tips have previously led to TechCrunch scoops about Instagram’s video calling, soundtracks, Focus portrait mode and QR Nametags features that were all later officially launched. Amazon didn’t respond to a press inquiry before publishing time, and it’s unclear if its actively involved in the development of Snapchat visual search or just a destination for its results. Snap already sells its Spetacles v2 camera glasses on Amazon — the only place beyond its own site. Snap Inc. gave TechCrunch a “no comment,” about visual search but the company’s code tells the story.
Snapchat first dabbled in understanding the world around you with its Shazam integration back in 2016 that lets you tap and hold to identify a song playing nearby, check it out on Shazam, send it to a friend or follow the artist on Snapchat. Project Eagle builds on this audio search feature to offer visual search through a similar interface and set of partnerships. The ability to identify purchaseable objects or scan barcodes could turn Snapchat, which some view as a teen toy, into more of a utility.
Snapchat’s code doesn’t explain exactly how the Project Eagle feature will work, but in the newest version of Snapchat it was renamed as “Camera Search.” If you remember, Snap used another animal name, “Cheetah”, as the secret word for its big redesign. The app’s code lists the ability to surface “sellers” and “reviews,” “Copy URL” of a product and “Share” or “Send Product” to friends — likely via Snap messages or Snapchat Stories. In characteristic cool kid teenspeak, an error message for “product not found” reads “Bummer, we didn’t catch that!”

Eagle’s visual search may be connected to Snapchat’s “context cards,” which debuted late last year and pull up business contact info, restaurant reservations, movie tickets, Ubers or Lyfts and more. Surfacing within Snapchat a context card of details about ownable objects might be the first step to getting users to buy them… and advertisers to pay Snap to promote them. It’s easy to imagine context cards being accessible for products tagged in Snap Ads as well as scanned through visual search. And Snap already has in-app shopping.
Snapchat’s Camera Search could become a direct competitor for Pinterest’s Lens, which identifies objects and brings up related content. Pinterest has evolved the product, embedding it inside the apps of retailers like Target. Beyond shopping, Camera Search could let Snapchat users find Stories that contain the same object they’re snapping.
Being able to recognize what you’re seeing makes Snapchat more fun, but it’s also a new way of navigating reality. In mid-2017 Snapchat launched World Lenses that map the surfaces of your surroundings so you can place 3D animated objects like its Dancing Hotdog mascot alongside real people in real places. Snapchat also released a machine vision-powered search feature last year that compiles Stories of user-submitted Snaps featuring your chosen keyword, like videos with “puppies” or “fireworks,” even if the captions don’t mention them.
Pinterest’s Lens visual search feature
Snapchat was so interested in visual search that this year, it reportedly held early-stage acquisition talks with machine vision startup Blippar. The talks fell through with the U.K. augmented reality company that has raised at least $99 million for its own visual search feature, but which recently began to implode due to low usage and financing trouble. Snap Inc. might have been hoping to jumpstart its Camera Search efforts.
Snap calls itself a camera company, after all. But with the weak sales of its mediocre v1 Spectacles, the well-reviewed v2 failing to break into the cultural zeitgeist and no other hardware products on the market, Snap may need to redefine what exactly that tag line means. Visual search could frame Snapchat as more of a sensor than just a camera. With its popular use for rapid-fire selfie messaging, it’s already the lens through which some teens see the world. Soon, Snap could be ready to train its eagle eye on purchases, not just faces.
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