Snap shares saw an 8% rise after the company confirmed a deal with Amazon that enables users to purchase products from the online retail giant without leaving the Snap app. This agreement is similar to one between Meta and Amazon, aiming to simplify the purchasing process for Snap users.
Under this deal, U.S. customers can access real-time pricing, Prime eligibility, delivery estimates, and product details for select Amazon product ads within Snapchat. The in-app shopping experience with Amazon is available for specific products advertised on Snapchat, either sold by Amazon or independent sellers on Amazon’s platform.
Snap is seeking to boost its growth, which declined following Apple’s iOS privacy change in 2021, making it more challenging for social media platforms to target users with ads. In the third quarter, Snap reported a 5% YoY increase in revenue, breaking a two-period shrinkage trend.
The company refrained from offering formal guidance, citing pauses in spending from numerous brand-oriented advertising campaigns after the onset of the Middle East conflict. Last week, Meta introduced a similar feature in collaboration with Amazon, allowing Facebook and Instagram users to link their accounts for seamless in-app purchases from Amazon ads.
Industry experts see these collaborations as beneficial for product awareness and improved ad conversion, leveraging the strong targeting capabilities of social media platforms. While Meta’s stock has surged nearly 180% in 2023, Snap’s shares are up approximately 37% after the recent rally.