Snapchat joins Microsoft ads to power sponsored links in its My AI chatbot

Snapchat's ‘My AI’ chatbot is getting a boost with the help of Microsoft, as the two tech giants collaborate on inserting advertisements into this innovative AI feature. The partnership, unveiled at Microsoft's recent advertiser event, aims to seamlessly integrate sponsored links into conversations with My AI, creating a unique advertising experience.

We’re excited to announce a groundbreaking partnership with @Snap!

Snap is now tapping the unique based capabilities of Microsoft’s Chat Ads API to serve highly relevant Sponsored Links in their highly engaging My AI chatbot within Snapchat. Learn more: https://t.co/2ied52bdar pic.twitter.com/jgIAUiRo22

— Microsoft Advertising (@MSFTAdvertising) September 25, 2023

Transforming AI chats with ads

Snapchat introduced My AI earlier this year, a chatbot designed to assist its users with various queries and tasks. One of the intriguing features was the concept of sponsored links. These are links that are suggested within the chat, offering users relevant information based on their conversations with MyAI.

For instance, if you were chatting with My AI about travel plans, it might recommend astonishing places with a sponsored link. Similarly, if you sought advice for hotels or restaurants, My AI could provide links to nearby hotels or the most renowned ones. This clever approach also extends to shopping recommendations, where My AI could connect you to local retailers through sponsored links.

The Microsoft-Snapchat synergy

Now, Snap and Microsoft are teaming up to enhance these link suggestions. Powered by Microsoft Advertising's Ads for Chat API, Snapchat's Sponsored Links will not only connect users with relevant partners but also empower advertisers to reach their target audience at the precise moment they express interest in a product or service.

Initially, this feature will be available to Microsoft Advertising clients in the United States and select markets.

Following in the footsteps of Bing & Google

Snapchat's venture into turning AI chatbot conversations into an advertising landscape is not entirely unique. Microsoft, with its Bing Chat, and Google, with its Search Generative Experience (SGE), have already experimented with integrating ads into their AI chatbot services. These ads, like Snapchat's Sponsored Links, are contextually related to the ongoing conversation.

Customised advertising experience

Microsoft's Ads for Chat API, introduced in May 2023, is built on the same technology as Bing but offers third-party partners the flexibility to customise the advertising experience according to their audience's preferences.

Early adopters of this technology will have the opportunity to influence the API's future, as Microsoft actively seeks feedback from those integrating the service into their own apps and platforms, including Snap.

Snapchat's ongoing commitment to enhancing sponsored links

Snapchat assures that the Sponsored Links feature is still in an early experimental phase, with a commitment to designing thoughtful and useful experiences for its community. The company is also exploring collaborations with other partners to further enhance the capabilities of My AI in the future.

As Snapchat and Microsoft join forces, users can expect a more personalised and interactive chatbot experience where ads seamlessly blend into their conversations, offering helpful suggestions and information tailored to their needs.