(CTN News) – A pivotal partnership between Microsoft Advertising and Snapchat has been announced. This partnership positions both tech giants at the forefront of advertising innovation in the business world.
With the help of Microsoft’s Chat Ads API, Snap aims to serve sponsored links in Snapchat’s My AI chatbot so as to enhance a dynamic user experience with sponsored links on the platform.
Snapchat’s AI chatbot displays ads to 150 million people
Despite its relatively small size, Snapchat boasts an impressive reach, with more than 750 million active users each month who send billions of messages every day.
In the same way, Microsoft has been making great strides with its recent advancements in AI technology, notably through Bing and asset recommendations for Responsive Search Ads along with other innovations.
It is hoped that this partnership will facilitate the integration of Sponsored Links into Snapchat’s My AI, which is one of the most popular consumer chatbots, interacting with more than 150 million users every day.
As you can see in the following screenshots, there are samples of ads from CDW, ADT, and Amazon, along with the conversations that led My AI to use Ads for Chat API to serve sponsored links.
Reaching specific demographics in a new way
In terms of ROI, this collaboration presents a significant opportunity for advertisers.
With Microsoft’s generative AI technology, brands can reach out to Snapchat’s youthful, mobile-first audience in a more engaging way than ever before.
As a result, Microsoft’s focus on mobile improvements resonates well with Snapchat’s user base, making the partnership a strategic move for both organizations to take.
Snap traffic can be viewed by advertisers in the Microsoft Advertising Publisher report, which can be found under the category “Microsoft sites and select traffic”.
As a result of the testing phase of the program, advertisers saw an increase of over 15% in mobile impressions from this category, while at the same time, the cost per acquisition remained unchanged or improved.
Partnerships with future chat ads APIs
In order to refine their chat advertising offerings, Microsoft and Snap will remain attentive to advertiser feedback.
Taking part in this initiative is not merely a one-time event; it marks a strategic milestone in the continued growth of generative AI in the advertising industry.
Through its advertising feedback portal and social media, Microsoft encourages partners using the Chat Ads API to provide feedback.
Furthermore, Microsoft plans to expand its new advertising option to more partners in the near future, in addition to its current partners, Snap and Axel Springer.
The website encourages companies interested in partnering with the company to complete a partnership application for assistance with “algorithmic organic results and ad monetization, or just ad monetization.”