Snapchat Partners with Microsoft to Insert Ads into AI Chatbot

Snapchat Partners with Microsoft to Insert Ads into AI Chatbot

Snapchat has teamed up with Microsoft to introduce ads in its AI chatbot, My AI. The chatbot, which was introduced earlier this year to Snapchat users, will now feature Sponsored Links powered by Microsoft Advertising’s Ads for Chat API. These links will connect users with relevant partners based on their conversations and allow advertisers to reach customers at the moment they show interest in their offerings. The new feature will be available in select markets.

Transforming AI Chatbot Conversations with Ads

This idea of incorporating ads into AI chatbots is not exclusive to Snap. Soon after launching Bing Chat, Microsoft began experimenting with inserting ads from its partner brands into chatbot conversations. Google also followed suit by testing ads in its Search Generative Experience (SGE) chatbot. Similar to these platforms, Snap’s ads will appear as Sponsored Links related to the conversation.

About Microsoft’s Ads for Chat API

In May, Microsoft unveiled its Ads for Chat API, which allows third-party partners to customize and control the ad experience in chatbots. This technology, built on the same foundation as Bing, enables partners to choose the best ad formats for their audiences and seamlessly integrate them into their own experiences. As it is a relatively new product, early adopters like Snap will have the opportunity to shape the future of the API through feedback.

A Boost for Microsoft’s Ads Business

The partnership between Snapchat and Microsoft marks another success for Microsoft’s ads business. This venture allows Microsoft to power ads for tech companies seeking alternatives to Google. Last year, Netflix chose Microsoft to fuel its new ad-supported tier as part of an effort to collaborate with a streaming partner that did not compete directly with Netflix. With My AI ads, Snapchat could potentially become a popular platform for Gen Z users to search for products and services through AI chats instead of using conventional search engines like Google.

Ongoing Development and Future Enhancements

Snapchat emphasizes that the Sponsored Links feature is still in an early experimental phase, aiming to ensure thoughtful and useful experiences for its community. The company also mentions its collaboration with other partners to enhance My AI further in the future.

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