When mobile phones became all the rage, Verizon was at the forefront. In 2000 this company debuted with a telecom service that would connect Americans across the country and they have made good on the promises that they have made over the years. Unfortunately, mobile phones have evolved into smartphones along with people who are not interested in basic texting or mere phone calls to loved ones. It is safe to say that all telecommunication companies, including Verizon, need to up their game to change with the times if they want to appeal to Gen Z.
If only there was a company that fed the needs of the new generation… Step in Snap. This is the company that brought the world the augmented experience of Snapchat. Many users are obsessed with Snapchat along with anything from profile pictures to animals is filtered with funky AR elements. Even though a large population of the United States uses Snapchat, Gen Z’s are the ones using it the most. It is then obvious that Verizon sought out a company like Snapchat that is trendy to help boost its latest venture: leveraging 5G technology.
Last Thursday, Verizon and Snap struck a deal that would be aimed at distribution and marketing. If you are wondering how this deal will benefit Snapchat, the deal consists out of equal parts 5G and Gen Z. Verizon will pre-install Snapchat on selected 5G handsets while Snapchat will give the carrier ad inventory. The company also agreed to give Verizon branded AR experiences that they can use to appeal to a wider audience. This includes things like new ways to enjoy sporting events. The pairing of these two companies holds advantages for both if the deal is successful, it could be a great marketing strategy.
How exactly is this going to work for Verizon? As the largest telecommunications company in the United States, Verizon must start to expand its services to 5G technology. Verizon’s 5G lab is appealing to third parties to build services on its next-gen networking technology. Snap is the perfect company to boost Verizon’s ratings mainly because of its high engagement with Gen Z. Verizon mentioned that about 90% of 13-24-year-olds in the US use Snapchat every single day. It is pretty easy to do the math with these figures.
And what about Snap? The company is fired up about the deal. They are supportive of 5G development. By implemented 5G, it will boost Snapchat’s overall performance, increase capacity, reduce latency, along with enable smoother and sharper AR features. This will appeal to a larger audience to keep the current users satisfied. Snap wants to be the number one player on the AR platform. Verizon wants to be the best provider of 5G. Both companies think that collaboration can translate their substantial investments and developments into something that consumers want.