Geofilters patent buy reveals how Snap plans to make money

Snapchat maker plans to appeal to advertisers through geofilters

Snap has signalled how it intends to make money, acquiring a geofilter patent from photo app competitor Mobli.

In 2012, Mobli patented geofilters, which are filters which you can impose on your photos which include information such as your location, the time the photo was taken or even the speed which you're travelling at. 

And now it's sold that patent to Snap, according to a report by TechcrunchThe Snapchat maker revealed in its S-1 filing for its IPO that $360 million of its $400 million revenues came through selling geofilters to its advertisers. This will also help Snap avoid potential legal disputes.

The filters are a useful way to promote a product, event or special day and by getting users to apply it to your image you will reach their Snap network and spread the idea you are trying to get across by using their photo, which might even be a selfie.

Moshe Hegog, who co-founded Mobli, apparently sold the patent to Snap for $7.7 million this month, which is also meant to be the highest amount paid for an Israeli tech industry patent.

Advertisement
Advertisement - Article continues below
Advertisement - Article continues below

What makes the patent (US#20160373805, US#9459778) special is that it covers server-side filters so the filter comes from the server and not from the app. This is particularly useful as the app doesn't have to be updated with new geofilters every time the company wants to add new ones and also should not use as much battery power as the filter effects are not being made on the phone itself.

This is an important step for Snap so that it keeps ahead of its competitors, mainly Facebook and its Instagram, and continues to be able to collect revenue from advertisers.

Featured Resources

What you need to know about migrating to SAP S/4HANA

Factors to assess how and when to begin migration

Download now

Your enterprise cloud solutions guide

Infrastructure designed to meet your company's IT needs for next-generation cloud applications

Download now

Testing for compliance just became easier

How you can use technology to ensure compliance in your organisation

Download now

Best practices for implementing security awareness training

How to develop a security awareness programme that will actually change behaviour

Download now
Advertisement

Most Popular

Visit/policy-legislation/data-governance/354496/brexit-security-talks-under-threat-after-uk-accused-of
data governance

Brexit security talks under threat after UK accused of illegally copying Schengen data

10 Jan 2020
Visit/security/cyber-security/354468/if-not-passwords-then-what
cyber security

If not passwords then what?

8 Jan 2020
Visit/web-browser/30394/what-is-http-error-503-and-how-do-you-fix-it
web browser

What is HTTP error 503 and how do you fix it?

7 Jan 2020
Visit/policy-legislation/31772/gdpr-and-brexit-how-will-one-affect-the-other
Policy & legislation

GDPR and Brexit: How will one affect the other?

9 Jan 2020