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Home Social Media

Snap unveils AI-powered advertiser solutions, Sponsored Snap updates

May 8, 2025
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  • Snap announced recent tools for advertisers, including updates to its Sponsored Snaps product and a set of artificial intelligence-powered solutions, during its presentation on the Interactive Advertising Bureau’s NewFronts on Wednesday. 
  • New Sponsored Snaps features include First Snap, a single-day takeover offering that delivers a Snap to consumers’ Chat feeds that may then open to a full-screen video and be followed by a call to motion. Snap also added Web and App Auction Ads and Sponsored Snaps from Creators. 
  • Additionally, a brand new AI-supported Smart Campaign Solutions includes Smart Bidding and Smart Budget tools. Snap also unveiled a “Say it in a Snap” campaign highlighting its concentrate on authentic moments. 

 

Snap’s presentation on the IAB NewFronts, an annual showcase pitching marketers for greater spending commitments, focused on how the platform has rebuilt its promoting suite to be more centered on performance while also opening recent ways to achieve users through popular features like Chat that were previously not available to brands. For the past yr, the Snapchat owner has rolled out features including Sponsored Snaps, a brand safety and suitability suite and an expanded agency partner program. The strategy has appeared to repay: Snapchat doubled its advertiser base in 2024.

At the NewFronts, executives pointed to an uptick in challenger brands on the emphemeral messaging service, displaying ads for popular products like Celsius energy drinks and Crumbl Cookies on screen. Snap sought to display the way it connects brands with audiences more effectively while differentiating from social media rivals which have courted higher levels of controversy and regulatory scrutiny of late.

“Of course, there are monopolies to prop up, masculine energy to be exuded, measurement homework to be self-graded, platform safety to be moderated by … the users themselves? And after all, data to be shared with platforms which have been banned, unbanned, and perhaps banned again,” said Chief Business Officer Ajit Mohan, offering sly digs at Meta CEO Mark Zuckerberg after which TikTok, whose NewFronts earlier within the week arrived as a possible U.S. divestiture stays up within the air. 

Snapchat centered much of the presentation in Manhattan on the way it is constant to reinforce its Sponsored Snaps product focused on Chat. In addition to the brand new First Snap takeover feature is a capability to deliver targeted ads to people via the ads auction, allowing Snapchat users to receive highly relevant Sponsored Snaps for any advertiser using specific Goal-Based Bids specified by Snap. Additionally, advertisers can now send Sponsored Snaps directly from creators’ handles to users’ feeds.

“There’s never been a chance like this on Snapchat, to interact people in Chat, the tab Snapchatters use essentially the most,” said Mohan. “In testing to this point, things have began off with a bang. This has quickly grow to be our largest single-day reach product.”

Snap can be developing AI-powered bidding and budgeting solutions for advertisers to enhance outcomes. The Smart Bidding function allows advertisers to set a goal cost-per-action, and the system will consistently deliver a CPA inside an affordable range of that bid. The Smart Budget tool, which is currently in alpha testing, will enable advertisers to routinely shift spending to the highest-performing ad sets inside their campaigns.

The platform can be introducing Under the Ghost, a music performance series including performances and conversations that will likely be hosted at Snapchat’s studio in Santa Monica, California. The program will provide a sponsorship opportunity for brands to tap into music, culture and community with full-funnel packages that include Sponsored Snaps, creator content and Total Takeover placements. 

Rounding out its NewFronts efforts was the launch of its “Say it in a Snap” campaign, which is supposed to position Snapchat because the app for showcasing real, relatable moments. The campaign will include location-specific creative on billboards in New York City locations including Times Square, Citi Field and Madison Square Garden.

Snap reported $1.36 billion in revenue in Q1 2025, representing 14% yr over yr growth, per its latest earnings statement. The company attributed the rise to its direct-response promoting solutions, which grew 14% yr over yr and contributed 75% of the corporate’s total promoting revenue for the primary time over the period. Total lively advertisers grew 60% versus the year-ago period. 

Despite positive Q1 results, Snap declined to supply Q2 guidance, citing larger economic uncertainties, a signal of the impact the present macro environment could already be having on platforms that depend on advertiser dollars.

Peter Adams contributed additional reporting to this story.

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