Snapchat 'Spectacles' See Shares Slump

Wearable technology is a great marketing opportunity for businesses and if executed effectively it can be hugely beneficial. Despite this, wearable technology is arguably a slow burner compared to other innovative digital marketing trends and therefore poor execution can really hold back a business. 78% of wearable technology is purchased for a fitness based purpose and therefore to infiltrate the market is a large risk if it has other purposes.

With the release of Snapchat’s latest earning reports, a slump in share price occurred as it hit $400 million in losses with its poor performances over the last three quarters consecutively. In this time the business took a $40m charge on unsold ‘spectacles’ video camera glasses, Snapchat's very own wearable technology. The snap specs costing $129 offers a sunglass based technology which can take video and photography linked to their social media account. The technology is brand new and opens new opportunities to capture amazing moments from your point of view, therefore why did it not take off?

The initial launch was full integrated marketing campaign engaging with younger audiences, with trendy vending machines achieving snaking long queues down Venice Beach. However, the product failed to maintain usage with customers as well not accessing all its current social media users only tapping into 0.08% of its community. The marketing campaign had major flaws, not learning from other large scale unsuccessful launches by Google with Google Glass which made their early adopters of technology the face of their brand and product. Despite creating a successful campaign tackling the style of sunglasses, they failed at associating the brand with innovative opinion leaders that are tech savvy and mainstream.

The product itself has taken great steps to improve Google’s launch of their glasses, however the marketing was not up to scratch to achieve a widespread successful launch.

Despite the poor success of this launch, it’s a great insight of what’s to come, the product itself is truly innovative and exploits opportunities available with wearable technology. Now Snapchat and Google have dipped their toe in the water, its exciting to see what’s next!