Snapchat is expanding its augmented reality advertising strategy with a new large-format activation in one of the world's most visited public spaces. On June 18, the platform launched an activation in New York City's Times Square that allows passersby to interact with AR ads displayed on large-format video screens.

Snapchat AR activation

Dubbed "Crowd Created AR," the activation offers an IRL booth experience that places participants directly within the scene of a digital advertisement. For this initial rollout, Snapchat partnered with HBO Max to create an AR promotion tied to the upcoming season of "House of the Dragon." The experience enables users to insert themselves into a fictional battle scene inspired by the series.

As explained by Snap: "This new IRL advertising format is the first Snapchat AR experience to project visitors live onto Times Square billboards in New York City and features first-ever four-sided AR Mirror."

The activation serves dual purposes: promoting both Snapchat's AR capabilities and its advertising partners, while potentially driving more users toward the app. It is not the first time Snapchat has leveraged IRL activations to generate buzz around its camera features.

The Snapchat camera has become a recurring element at sporting events, with fans appearing on in-stadium Jumbotrons with a Snap filter activated. Additionally, Snapchat has experimented with in-store AR activations for selected brands, as reported by Retail Brew, and hosted interactive AR art projects at various museums and events.

However, this Times Square installation marks the first time Snapchat has placed a large-scale AR activation in such a high-profile, high-traffic location. The move could create a more lucrative sponsored ad offering for the company, depending on advertiser interest.

The launch comes amid broader efforts by Snapchat to develop its advertising opportunities and demonstrate the value of its digital tools and interactive AR experiences. Snapchat posted a lower-than-expected revenue result in Q1 2026, and the app is also experiencing declining usage in key markets. As a result, the company needs to build on its opportunities to drive more intake and offset rising development costs.

Like all major platforms, Snapchat is investing heavily in artificial intelligence and spending significantly on development and marketing for its new AR glasses. The platform is testing more ad options and tools as it searches for additional revenue streams.

Though perhaps inadvertently, this Times Square example may point to a promising path forward for Snapchat: positioning itself as a provider of third-party AR tools and activations that operate outside of the app itself. If Snapchat's usage continues to decline, and it has already integrated ads into every feasible element without overwhelming its audience, the company might need to explore additional opportunities—such as facilitating next-level AR experiences for hardware providers like Apple's VisionPro and Meta's forthcoming AR device.

AR does appear poised to become a more mainstream consideration in the future, but whether Snapchat has the capacity to support its own AR device and platform remains uncertain. Experiences like this one, powered by Snapchat outside of the app, could nevertheless become another viable consideration for the business.