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Snap and Microsoft Team Up to Revolutionize Chatbot Advertising

May 17, 2024


Snapchat is taking its AI chatbot feature, My AI, to the next level by partnering with Microsoft. Announced at a recent Microsoft advertiser event, this collaboration aims to enhance the user experience by integrating Sponsored Links directly into chatbot conversations. These links are not just random; they are contextually relevant to the ongoing conversation, offering users immediate solutions to their queries.

How Does It Work?

Imagine you're chatting with My AI and you ask for dinner recommendations. The chatbot could respond with a link sponsored by a local restaurant or a food delivery app. Similarly, if you're planning a weekend getaway, My AI could provide a link from an airline or hotel. This feature is powered by Microsoft Advertising's Ads for Chat API, which allows advertisers to connect with users at the exact moment they express interest in a product or service.

Not a Novel Idea, but a Strategic Move

Snapchat isn't the first to explore this advertising landscape. Microsoft's own chatbot, Bing Chat, and Google's Search Generative Experience (SGE) have also dabbled in integrating ads into AI chat experiences. However, what sets Snapchat apart is its focus on younger Gen Z users, who might prefer conversational interfaces over traditional search engines like Google.

Customization and Future Developments

The Ads for Chat API is highly customizable, allowing third-party partners like Snapchat to tailor the ad formats to their audience. This is still an experimental phase, and both Microsoft and Snapchat are open to feedback to refine the feature further.

A Win-Win for Both Parties

This partnership is a significant milestone for Microsoft's advertising business. Last year, Microsoft also powered Netflix's new ad-supported tier, marking its growing influence in the ad space. For Snapchat, this could potentially transform the platform into a new search engine for products and services, driven by AI chatbot interactions.


What is My AI?

My AI is Snapchat's AI chatbot feature that assists users in various tasks and queries.

How do Sponsored Links work in My AI?

Sponsored Links are contextually relevant links that appear in your chat with My AI, guiding you to products or services you might be interested in.

Is this feature available globally?

As of now, this feature is available to Microsoft Advertising’s clients in the U.S. and other select markets.

What does this mean for advertisers?

Advertisers can now reach Snapchat users at the exact moment they express interest in a product or service, making the ads more effective and targeted.

Are there any competitors doing the same thing?

Yes, Microsoft and Google have similar features in their respective chatbots, but Snapchat aims to capture the younger Gen Z market.

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