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  • Writer's pictureSarah Ruivivar

Snapchat and Microsoft Team Up for AI Chatbot Ads

Updated: Oct 29, 2023

Image Credits: Snap

Are you ready for a chat with a twist of advertising?

Snapchat's AI chatbot, My AI, is about to get a lot more interactive thanks to a new partnership with Microsoft. This collaboration will see sponsored links being seamlessly woven into your AI chat experience.

Introduced earlier this year, My AI has been a hit with Snapchat's user base. The company announced in May that it would begin testing Sponsored Links in My AI, pairing link suggestions with the user's conversation with the AI helper. For instance, if you asked My AI where to dine, the chatbot could respond with a link sponsored by a local restaurant or food delivery app.

Now, Microsoft is stepping into the ring to power these link suggestions. Announced at its advertiser event, Microsoft Advertising’s Ads for Chat API will enable Snap's Sponsored Links to connect users with relevant partners based on their conversation. This not only provides a personalised experience for users but also allows advertisers to reach customers at the precise moment they express interest in their offering.

This innovative approach to advertising isn't unique to Snapchat. Microsoft and Google have also been experimenting with inserting ads into their AI chat experiences, Bing Chat and Search Generative Experience (SGE) respectively.

Microsoft’s Ads for Chat API, introduced in May, is built on the same technology used in Bing. It allows third-party partners to control and customise the experience, choosing the ad formats they believe will resonate best with their audience.

This partnership is a significant win for Microsoft's ads business, which has been powering ads for other tech companies seeking a non-Google partner. For Snapchat, this deal could potentially transform it into a go-to platform for younger Gen Z users searching for products and services via AI chats, rather than traditional search engines like Google.

Snapchat has stated that the Sponsored Links feature is still in "an early experimental phase". However, the company is already working with a variety of other partners to enhance My AI in the future. So, brace yourself for a more interactive and personalised AI chat experience on Snapchat!

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