What does Snap Inc. actually do?

If you’ve ever put on a digital flower crown, given yourself puppy ears, or sent a photo that vanishes in seconds, you’ve used the Snapchat app. But behind the fun is a major technology company called Snap Inc. So, what does Snap Inc. actually do besides create those famous filters?

Most people recognize the little yellow ghost but not the billion-dollar company it represents. Snap Inc. is the business behind the app, and its plan is to change how we see the world, starting with your phone’s camera. This guide explains the company, its business model, and its vision for the future.

Thinking of Snapchat as just a social media app for teens is like seeing only the tip of the iceberg. By the end of this, you’ll understand the massive operation behind the ghost.

First Things First: What’s the Difference Between Snapchat and Snap Inc.?

You’ve likely seen the little ghost icon on a phone—that’s the logo for Snapchat, the popular app for sending disappearing photos and using fun filters. While most of us just know the app, the company behind it is called Snap Inc. This distinction is the first key to understanding what they really do.

This parent company structure is common; it’s the same relationship that Meta has with its products like Facebook and Instagram. Simply put, Snapchat is the app you use, while Snap Inc. is the business behind it. This structure is central to its business model and explains how a free app can become a billion-dollar enterprise.

How Does a Free App Make Billions of Dollars?

If Snapchat is free to use, how does Snap Inc. make billions of dollars? The answer is the same one that powers network television and many websites: advertising. Think of it like a magazine. You don’t pay for the articles, but the publication earns its money by selling ad space. Snap Inc. uses a similar model, generating the vast majority of its revenue from ads shown inside the app.

So, where are these ads? The two most common forms of advertising are seamlessly woven into the user experience:

• Commercials between Stories: Short video ads that appear as you tap from one friend’s Story to the next.
• Sponsored Content: Ads that look like regular Snapchat Stories or Lenses, often appearing in the “Discover” section alongside content from news outlets and creators.

Beyond these spots, Snap Inc. has another clever revenue stream. Companies can pay to create their own custom Augmented Reality Lenses for users to try on and share. If you’ve ever used a filter that puts a branded hat on your head or lets you virtually try on a specific pair of sunglasses, you’ve interacted with one of these ads. This unique approach hints at the company’s deeper focus on being a “camera company.”

The Big Secret: Why Snap Inc. Calls Itself a “Camera Company”

At its core, Snap Inc. doesn’t see itself as a social media company. According to its founder and CEO, Evan Spiegel, it’s a “camera company.” This might sound strange for a business known for a messaging app, but this single idea is the key to understanding everything Snap does. They want to reinvent what a camera is for.

For over a century, a camera was a tool for saving memories—a device for capturing a moment to look at later. Snap’s vision treats the camera as a tool for talking right now. In their world, a picture of your coffee isn’t for a photo album; it’s a way to say “good morning.” The camera becomes a primary way to communicate visually, just like a keyboard is for typing.

This “camera-first” philosophy is precisely why the Snapchat app opens directly to the camera screen, unlike other apps that open to a feed of content. It’s a deliberate choice designed to encourage you to create and share in the moment. By putting the camera front and center, Snap Inc. is betting that the future of communication isn’t just about what you type, but about what you see and share. The powerful technology making that vision a reality is Augmented Reality.

What is “Augmented Reality” and Why Does Snap Care So Much?

Augmented Reality, or AR, adds a digital layer on top of what you see in the real world. Think about how a weather forecast shows animated rain clouds over a map of your city—that’s a basic form of AR. It takes a real view and enhances it with computer-generated information.

If you’ve used Snapchat, you have already used AR. The very filters and Lenses that made the app famous—from floating hearts to virtual sunglasses that fit perfectly on your face—are AR in action. The technology “sees” the world through your camera and overlays a digital creation on it in real time, turning a simple video into a shared experience.

For Snap Inc., AR is much more than a fun gimmick; it’s the entire future of its camera company strategy. The company believes that computing will eventually move beyond our phone screens. Instead of looking down at a map for directions, AR could place glowing arrows directly onto the street in front of you. Instead of guessing how a new couch might look in your living room, AR could let you place a true-to-scale digital version there to see for yourself.

This long-term vision is why Snap is also experimenting with hardware like its Spectacles, glasses designed to eventually bring AR features out of the phone and directly into your line of sight.

What Else Does Snap Inc. Own Besides the Camera?

Beyond the camera’s creative tools, Snap has also built out your digital identity. If you’ve ever seen a friend’s cartoon-like avatar pop up in a chat, you’ve met their Bitmoji. Snap Inc. owns the company behind these personal characters, allowing you to create a “mini-me” that represents you across the app. Your Bitmoji can show your mood, star in comics, and even appear alongside you in the real world through augmented reality.

The app also features a built-in media platform called Discover. Think of it as a fast-paced, vertical-video magazine rack right inside Snapchat. Swiping over to this section reveals short, engaging stories from major publishers like ESPN, National Geographic, and The Wall Street Journal. This transforms Snapchat from a simple messaging tool into a destination where users can catch up on news, pop culture, and entertainment.

Together, these pieces create a complete ecosystem. The camera captures moments from your real life, your Bitmoji represents your virtual self, and Discover provides the media you consume. Snap’s goal is to blend these digital and physical worlds together seamlessly.

From Your Phone to Your Face: What Are Snap’s “Spectacles”?

How does Snap plan to move its camera strategy beyond the phone? The answer is a piece of hardware called Spectacles. These are essentially stylish glasses with a small, integrated camera. With a simple tap on the frame, you can capture photos and short videos from your own first-person perspective, completely hands-free. The content is then sent wirelessly to your Snapchat app, ready to be shared.

The idea is to capture moments more naturally. Instead of pulling out your phone and seeing the world through a screen, you can stay present at a concert or on a hike while the technology does the work in the background. It’s a subtle but important shift from documenting a moment to simply living it.

While fun for capturing memories, Spectacles represent a crucial step in Snap’s long-term vision. This hardware is the physical foundation for the future of augmented reality. The ultimate goal isn’t just to record the world through glasses, but to add to it—to one day overlay digital information and creative effects directly onto your view of reality. This ambitious push into wearable AR is a major focus for the company.

How is Snap Inc. Different From Meta (Facebook and Instagram)?

At first glance, Snapchat might seem like just another social app. Its main competitors are platforms like Facebook and Instagram, as they all let you share photos and videos. But beneath the surface, Snap Inc. built its app with a completely different purpose in mind compared to Meta’s platforms.

Think of Snapchat as being designed for a conversation, not a performance. The entire experience, from disappearing messages to silly filters, is meant to help you communicate more genuinely with a small circle of your closest friends. This intimate, low-pressure environment is a key reason its target audience leans heavily towards teens and young adults, who often value private, authentic connection over a polished public image.

In contrast, Meta’s platforms are frequently used for broadcasting. Your Facebook profile or Instagram grid often acts more like a public scrapbook or a highlight reel, designed to be seen by a large network of family, colleagues, and acquaintances. The core difference is simple: Snapchat is for talking, while Facebook and Instagram are often for performing.

So, What’s the Big Picture for Snap Inc.?

What once seemed like a simple app for disappearing photos is actually the friendly face of a global camera company with a massive ambition. Fueled by advertising, this operation is playing the long game. Every silly face filter and dancing character is a real-world test for its core mission: building the future of augmented reality.

The company’s goal, driven by Evan Spiegel’s vision, is to one day seamlessly blend helpful and entertaining digital information with the world you see around you. The next time you see someone put on a digital flower crown, you won’t just see a playful filter. You’ll see a tiny, clever piece of a much bigger plan—a glimpse into a future that Snap is building, one snap at a time.