Snap share price and Fit Analytics acquisition
Snap (SNAP) on Wednesday announced a new acquisition that should help its Snapchat app improve monetisation of online advertising among advertisers selling clothes.
German company Fit Analytics has agreed to join Snap, but the terms and value of the deal were not disclosed.
Fit Analytics, founded in 2010, offers retailers and brands an online sizing tool, Fit Finder, to help online shoppers with their selections and improve customer service and satisfaction, ultimately achieving growth in online clothing sales.
The Fit Finder features machine learning algorithms that combine information about a consumer's body measurements with data from retailers about fabrics, cuts, sizes, etc. Fit Finder is already used by more than 18,000 retailers and brands. Fit Analytics will continue to operate from Berlin, with Fit Analytics continuing to serve its existing customers as part of Snap. Teams from both companies will work to expand their e-commerce and shopping offerings to include both AR augmented reality tools and video formats.
This focus on apparel advertising is no coincidence. According to research firm Piper Sandler, clothing and accessories now account for a third of total spending by teenagers in the US and that's Snapchat's largest audience.
By combining providing consumers with detailed product information and transparency of return terms, the Fit Finder product eliminates all possible arguments against buying clothes online.
This acquisition by Snap further proves the success of the company's efforts to monetise its social platform.