Snapchat Boosts Ad Capabilities with AI and Expanded Sponsored Snaps

At NewFronts 2025, Snapchat revealed a suite of new advertising features, including AI-powered tools and updates to its Sponsored Snaps inbox ads. These enhancements aim to improve campaign performance and offer more opportunities for brands to connect with users.

AI-Powered Bidding and Budget Allocation

Snapchat is introducing AI smart bidding, allowing advertisers to set a target cost-per-action. Snapchat's AI will then automatically adjust bids to achieve this goal. This feature leverages Snapchat's improved response understanding for better results within set parameters.

Additionally, a new "Smart Budget" feature is being alpha tested. This feature automatically allocates spending to the highest-performing ad sets, maximizing campaign outcomes.

Expanded Sponsored Snaps

Snapchat is expanding its Sponsored Snaps, which deliver promotions directly to user inboxes. Following the initial launch, Snapchat is adding more ways for brands to utilize this format.

  • "First Snap" offers a first-impression, single-day promotion with a follow-up call to action for users who open the Sponsored Snap.
  • Sponsored Snaps will now be available through the ads auction.
  • Brands can send Sponsored Snaps directly from creator handles.

While ads in DMs carry some risk, Snapchat believes these new controls and options can provide benefits for both brands and users.

New Music Promotion Initiative: "Under the Ghost"

Snapchat is launching "Under the Ghost," a music promotion initiative featuring live performances in its Santa Monica studio. This program offers unique sponsorship opportunities for brands, including Sponsored Snaps, creator content, and Total Takeover placements.

For artists looking to connect directly and authentically with their fans, Under the Ghost gives musicians the chance to reach fans where they're at. Under the Ghost also presents a strategic opportunity for brands. Future shows will provide unique sponsorship opportunities via full-funnel media packages, including Sponsored Snaps, creator content, Total Takeover placements and more.

Finally, Snapchat is launching a new promotional campaign highlighting its ability to facilitate connections around real-world moments.

To learn more about these updates, visit the official Snapchat Newsroom.