This partnership is a significant win for Microsoft's ad business, which has been powering ads for other tech companies seeking a non-Google partner. The deal could potentially transform Snapchat into a platform where younger Gen Z users search for products and services via AI chats, rather than using a search engine like Google. Snapchat says the Sponsored Links feature is still in an early experimental phase.
Key takeaways:
- Snapchat has partnered with Microsoft to insert ads into its AI product, My AI, using Microsoft Advertising’s Ads for Chat API.
- The ads will be in the form of Sponsored Links that are relevant to the user's conversation with the AI chatbot, allowing advertisers to reach customers at the moment they show interest in their offering.
- Microsoft's Ads for Chat API allows third-party partners to control and customize the ad experience, choosing the ad formats they believe are best for their audience and integrating them in a way that feels native to their own experiences.
- This partnership could potentially make Snapchat a place where younger Gen Z users search for products and services via AI chats, instead of using a traditional search engine like Google.