Snapchat Unveils AI-Powered Advertising and Sponsored Snaps Updates

Snapchat announced new AI-powered advertising tools and updates to its Sponsored Snaps product at the IAB NewFronts. These enhancements aim to improve ad performance and offer new ways to reach users.

New Sponsored Snaps Features

  • First Snap: A single-day takeover ad appearing in users' Chat feeds, opening to a full-screen video with a call to action.
  • Web and App Auction Ads: Expanding reach and targeting options for advertisers.
  • Sponsored Snaps from Creators: Leveraging creator influence for more engaging ad content.

AI-Powered Smart Campaign Solutions

Snapchat is introducing AI-powered tools to optimize campaigns:

  • Smart Bidding: Helps advertisers achieve target cost-per-action (CPA).
  • Smart Budget (Alpha): Automatically allocates budget to top-performing ad sets.

"Say It in a Snap" Campaign

Snapchat launched a new campaign emphasizing authentic moments on the platform. The campaign will feature location-specific creative in New York City.

Focus on Performance and Chat

Snapchat's advertising suite is now more performance-focused, with new opportunities to reach users through Chat. Chief Business Officer Ajit Mohan highlighted the potential of Chat ads, stating:

"There’s never been an opportunity like this on Snapchat, to engage people in Chat, the tab Snapchatters use the most."

He also noted the strong early performance of First Snap, calling it their "largest single-day reach product."

NewFronts and Competitive Landscape

At the NewFronts, Snapchat showcased its advertising platform as an alternative to rivals facing controversy and scrutiny. Mohan made veiled references to Meta and TikTok, emphasizing Snapchat's focus on user safety and data privacy.

Financial Performance and Outlook

Snapchat reported $1.36 billion in Q1 2025 revenue, a 14% year-over-year increase. Direct-response advertising solutions drove this growth. While Q1 results were positive, Snapchat declined to provide Q2 guidance due to economic uncertainty.

Additional reporting by Peter Adams.