Snapchat Testing Ads within AI Chatbot

Snapchat’s new ChatGPT-powered AI chatbot, rolled out to all users in April 2023, has gained popularity fast – so much so that, while the product itself is still in infancy, Snapchat has already begun testing sponsored links within the “My AI Chatbot” ecosystem. 

The ads can be delivered based on a user’s conversation with the chatbot, which has the potential to deliver more relevant content to users on the app.

Some examples for use cases:

• User prompt: “What should I have for dinner?” 
• AI chatbot response: sponsored link to restaurant or delivery app
  
  
• User prompt: “Help me plan my trip” 
• AI chatbot response: sponsored link for an airline or hotel

Why is this a good move for Snapchat?

This is a good alignment of demographics, behavior, and media. Ages 15-25 make up 48% of Snapchat’s user base in the U.S., and data shows that younger demos have a positive perception of AI advancements in general, so I think it’s safe to say that Snapchat’s placing a smart bet here.

This ultimately might prove to be a unique opportunity to reach audiences that have historically proven resistant to more traditional advertising methods. As we've mentioned before, Snapchat is an underrated Gen Z engagement platform.

Who’s next?

Essentially all major digital advertising platforms are already on track to follow suit with chatbot features. Google is already experimenting with something similar in search, Microsoft is right behind with their Chat API, and Meta has introduced a Generative AI function called LLaMA that, Meta being Meta, will almost certainly be monetized at some point.

So should Snapchat advertisers make the investment now?

It’s important to keep in mind that AI is still very new and very much an experiment. It’s absolutely worth testing out within your digital advertising strategy, but I recommend keeping a close eye on the AI’s interpretation of your product to ensure proper relevancy. It’s also important to consider that the audiences adapting to AI chatbots are likely more tech-savvy than audiences coming from other forms of media, which makes it an absolute imperative that you have a captivating and seamless user experience beyond the chatbot.

For example, if you have an out-of-date automated customer service chatbot on your landing page, you may want to consider removing or upgrading this feature before you bring in users through a more impressive chatbot experience.

We’re always happy to chat about our approach to testing AI; just drop us a line.