Snapchat Expands Ad Offerings with New 'Sponsored Snaps' Feature

Snapchat has announced an expansion of its ad offerings with the introduction of Sponsored Snaps, capitalizing on recent growth in its advertising business.

Traditionally, the Snapchat inbox has been ad-free, but Snap is now introducing paid direct messages as part of its strategy to boost advertising revenue

Commenting on the launch, Snapchat CEO Evan Spiegel said, “Sponsored Snaps appear in the chat inbox as a new Snap without a push notification, and opening the message is optional.

“Sponsored Snaps appear in the chat inbox as a new Snap without a push notification, and opening the message is optional. This allows advertisers to engage prospective customers all the way down the funnel all within a single ad unit; raise awareness with broad reach in the chat inbox, improve consideration with people who choose to view the Snap, and drive conversion with an in-message call-to-action.”

This allows advertisers to engage potential customers throughout the entire funnel within a single ad unit. It helps raise awareness with broad reach in the chat inbox, enhances consideration for those who choose to view the Snap, and drives conversion through an in-message call-to-action.

As further explain by Snapchat CEO Evan Spiegel

“As we continue to evolve Sponsored Snaps, we are excited to enable more messaging features powered by generative AI and integrated into advertiser CRMs to help our partners communicate with their customers at scale. As always, your conversations with friends are private and are not used for advertising purposes.”

The Snapchat inbox has traditionally been a sacred space free from promotional materials. However, as Snap seeks to expand its ad business, it is now venturing into paid direct messages with the introduction of Sponsored Snaps

Key takeaways:

• Introduction of Sponsored Snaps: Snapchat is expanding its ad offerings through "Sponsored Snaps". This new ad format aims to engage users throughout the entire funnel—raising awareness, improving consideration, and driving conversions with in-message call-to-actions.
• Expansion of Ad Features: Alongside Sponsored Snaps, Snapchat is introducing "Promoted Places" to highlight businesses on the Snap Map, and it will provide enhanced analytics. These updates are designed to give businesses better visibility and actionable insights, particularly focusing on lower-funnel advertising for small and medium-sized businesses (SMBs).
• Shift in Advertising Focus: Snapchat is shifting its focus toward SMBs, which are seen as a more stable and predictable revenue source compared to larger brands. This strategic shift follows a significant increase in SMB advertisers and aims to drive better performance and engagement by leveraging lower-funnel revenue opportunities.