Snapchat has unveiled its new advertising partner Microsoft, as the two companies plan to insert advertisements into Snap’s AI product, My AI.
The announcement follows Snapchat revealing earlier this year it would begin testing sponsored links in its chatbot, My AI.
Yet this new feature, which Microsoft unveiled at its advertiser event, would link suggestions that are paired with the user’s conversation with the AI helper.
Powered by Microsoft Advertising’s Ads for Chat API, Snap’s Sponsored Links will connect the user with relevant partners related to their conversation, while also allowing advertisers to reach customers that have an interest in their offering.
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For example, if a user asked My AI where to have dinner, the chatbot could reply with a link sponsored by a local restaurant or food delivery app, Snap explained.
The announcement follows Microsoft’s initial experimentation with inserting ads into the chat from over 7,500 Microsoft Start partner brands in a test to see if it could drive more traffic to the publisher’s website from chatbot users.
Meanwhile, Google also began to experiment with ads that appeared in its AI chatbot in Search, primarily in the US, known as its Search Generative Experience (SGE).
The partnership is a significant triumph for Microsoft’s advertising sector, which has found itself taking on the role of powering advertisements for other tech firms that are looking to steer clear of Google as a partner.
Last year, for example, Netflix went with Microsoft to power its new ad-supported tier, a move aimed at collaborating with a company without a direct presence in the streaming sector.
A Snap spokesperson commented the Sponsored Links feature remains in “an early experimental phase to ensure we design thoughtfully”.
