Snapchat brings AI-powered conversational advertising to its app

Key Points:

• Snapchat is introducing "AI Sponsored Snaps," enabling users to interact directly with brands' AI agents within ads placed in the app's main Chat tab, allowing for questions and personalized recommendations.
• This new format builds on existing Sponsored Snaps, which already boost conversions by 22% and reduce cost per action by nearly 20%, aiming to enhance user engagement through AI-powered conversations.
• Snapchat highlights strong user adoption of AI, noting over half a billion users have interacted with its AI chatbot since 2023, and emphasizes that conversation is becoming a key space for advertising.
• Brands gain access to Snapchat’s nearly one billion monthly active users with AI agents that can drive real-time engagement and purchasing decisions within the chat environment.
• Despite potential resistance to increased AI-driven advertising, Snapchat reports high user activity in the Chat feed, with 85% engaging regularly and teens frequently messaging multiple times daily.