Microsoft Advertising and Snap have announced a pivotal partnership that positions both tech giants at the vanguard of advertising innovation.

Using Microsoft’s Chat Ads API, Snap aims to serve sponsored links in Snapchat’s My AI chatbot, augmenting a dynamic user experience.

Snapchat My AI Chatbot Displays Ads To 150 Million Users

Snapchat boasts an impressive reach, with more than 750 million active users per month who send billions of messages daily.

Microsoft, likewise, has been making strides with its recent advancements in AI technology, notably through Bing and asset recommendations for Responsive Search Ads.

This partnership will facilitate Sponsored Links in Snapchat’s My AI, one of the largest consumer chatbots, interacting with over 150 million people.

The following shows sample ads from CDW, ADT, and Amazon, along with the conversations that led My AI to serve sponsored links powered by the Ads for Chat API.

New Ways To Reach Specific Demographic

For advertisers, this collaboration offers a significant ROI potential.

Using Microsoft’s generative AI technology, brands can engage deeply with Snapchat’s youthful, mobile-first audience.

Furthermore, Microsoft’s focus on mobile improvements resonates well with Snapchat’s user base, making the partnership a strategic move for both companies.

Advertisers can view the impact of Snap traffic in the Microsoft Advertising publisher report, found under the “Microsoft sites and select traffic” category.

During the testing phase, advertisers saw an increase of over 15% in mobile impressions from this category while maintaining or improving cost per acquisition.

Future Chat Ads API Partnerships

Microsoft and Snap vow to remain attuned to advertiser feedback as they refine their chat ad offerings.

This initiative is not just a one-off; it marks a strategic milestone in the continued growth of generative AI in advertising.

Microsoft encourages inaugural partners using the Chat Ads API to provide feedback through its advertising feedback portal and social media.

In addition to its current partners, Snap and Axel Springer, Microsoft has noted plans to expand the new advertising option to more partners soon.

It encourages interested companies to fill out a partnership application for help with “algorithmic organic results and ads monetization or ads monetization only.”

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