Snapchat launches AI chatbot ads in chat feature

Snap described the new format as building on the momentum from its Sponsored Snaps, which it said have driven 22 percent more conversions, at a near-20 percent lower cost per action, and twice as many conversions per full-screen ad view compared with other ad placements. (AFP/File)
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  • ‘AI Sponsored Snaps’ delivered to inboxes will allow users to chat directly with brand bots inside the app, the platform says

LONDON: Snapchat has launched a new advertising format that delivers sponsored chatbots powered by artificial intelligence into users’ inboxes, allowing them to chat directly with brand bots within the app.

The feature, “AI Sponsored Snaps,” is an extension of the existing “Sponsored Snaps” and it lets users interact with AI agents for brands through suggested prompts and follow-up questions.

“Conversation is becoming the most valuable real estate in advertising,” said Ajit Mohan, Snap Inc.’s chief business officer.

“AI is accelerating that shift, turning chat into the place where people discover products, ask questions and make decisions in real time.”

Snap described the new format as building on the momentum from its Sponsored Snaps, which it said have driven 22 percent more conversions, at a near-20 percent lower cost per action, and twice as many conversions per full-screen ad view compared with other ad placements.

The company said the branded bots will appear alongside other Snaps in a user’s inbox. Some critics have said this could make advertising feel more intrusive in private chat spaces. Snap counters that the introduction of the chatbots into everyday conversations will make the experience “more immediate, personal and useful.”

It added: “For brands, this means direct access to Snapchat’s nearly 1 billion monthly active users — with the ability to bring their own AI agents onto the platform and drive full funnel outcomes.”

The pilot program is being rolled out with Experian before Snapchat opens up the format to all advertisers.