Snapchat and Microsoft partner on new ads for AI chatbots

Snapchat and Microsoft have announced a new partnership to bring ads to Snapchat's My AI chatbot. The feature, which is still in the experimental phase, will allow advertisers to reach Snapchat users at the moment they are expressing interest in a product or service.

For example, if a user asks My AI where to have dinner, the chatbot could reply with a link sponsored by a local restaurant or food delivery app. Or if the user wanted suggestions for a weekend trip, My AI could return a link from an airline or hotel.

The ads will be powered by Microsoft Advertising's Ads for Chat API, which allows third-party partners to control and customize the ad experience. This means that advertisers can choose the ad formats they believe are best for their audience and integrate them in a way that feels native to their own experiences.

The partnership is another big win for Microsoft's ads business, which has found itself in the position of powering ads for other tech companies who have wanted to opt for a non-Google partner. Last year, for example, Netflix went with Microsoft to power its new ad-supported tier, in order to work with a company that didn't have a direct competitor in streaming.

As for My AI ads, the deal could potentially see Snapchat becoming a place where younger Gen Z users search for products and services by way of AI chats, in lieu of using a search engine like Google.

Here are some thoughts on the potential impact of this deal:

• Advertisers will be able to reach Snapchat users at the moment they are expressing interest in a product or service. This is a valuable opportunity for advertisers, as it allows them to target their ads with greater precision and relevance.
• Snapchat users will be able to discover new products and services through My AI chats. This could make My AI a more useful and engaging tool for Snapchat users.
• Microsoft's ads business will be strengthened by the partnership. This could help Microsoft to compete more effectively with Google in the online advertising market.

Overall, I believe that this deal is a positive development for both Snapchat and Microsoft. It has the potential to benefit advertisers, Snapchat users, and Microsoft's ads business.