Snapchat has recently announced a new advertising partnership with Microsoft, further enhancing the ad capabilities of its AI product, My AI. My AI is a chatbot feature that was introduced earlier this year to the wider Snapchat user base. With this new partnership, Snap aims to provide users with even more relevant and personalized ads based on their conversations with the AI chatbot.
Key Takeaway
Snapchat has partnered with Microsoft to deliver personalized and relevant ads in the My AI chatbot feature. This collaboration allows advertisers to connect with users at the moment of their expressed interest. The introduction of Sponsored Links in My AI shows Snap’s commitment to enhancing user experience through interactive ads. The ads landscape in AI chatbots is expanding, with Microsoft and Google also experimenting with similar ad formats.
Introducing Sponsored Links in My AI
In May, Snap revealed its plans to test Sponsored Links in My AI. These sponsored links would be suggested to users based on their conversations with the chatbot. For example, if a user asked My AI for restaurant recommendations, the chatbot could reply with a link sponsored by a local restaurant or food delivery app. Similar suggestions could be made for weekend trips, product inquiries, and more.
The Snap and Microsoft Partnership
Last week, Microsoft announced its partnership with Snap at its advertiser event. Through Microsoft Advertising’s Ads for Chat API, Snap’s Sponsored Links will connect users with relevant partners related to their conversations. This collaboration will allow advertisers to reach customers at the precise moment they express interest in their offerings. Initially, the feature will be available to Microsoft Advertising’s clients in the U.S. and select markets.
Expanding on the AI Ads Landscape
Snap’s foray into using AI chatbot conversations as an advertising landscape is not unique. Other tech giants, such as Microsoft and Google, have also experimented with integrating ads into their AI chatbot experiences. Bing Chat, Microsoft’s AI chatbot, and Google’s Search Generative Experience have both tested ads related to user conversations.
Microsoft’s Ads for Chat API
The Ads for Chat API, introduced by Microsoft in May, was built on the technology used in Bing. It allows third-party partners, like Snap, to control and customize the ad experience. This customization empowers partners to choose the ad formats that best suit their audience and integrate them seamlessly within their own platforms.
A Big Win for Microsoft’s Ads Business
This partnership is another milestone for Microsoft’s ads business. Over the years, Microsoft has become a go-to partner for tech companies seeking alternatives to Google’s advertising services. Notably, Netflix chose Microsoft to power its ad-supported tier, demonstrating the trust placed in Microsoft’s capabilities.
