Snapchat and Microsoft join forces for AI chatbot advertisements

Snapchat enhances its AI chatbot, 'My AI', through a partnership with Microsoft to incorporate advertisements. Earlier this year, Snapchat introduced this AI chatbot and announced it would test sponsored link suggestions that align with the conversations users have with the AI assistant.

For instance, if a Snapchat user asks My AI where to dine, the response may include a link sponsored by a local restaurant or a delivery service. This collaboration is made possible by Microsoft Advertising's Ads for Chat API, which allows advertisers to connect with users precisely at the moment of interest.

This partnership transforms the way companies advertise. With a direct link between conversations and relevant sponsored suggestions, brands can respond more effectively to the needs and interests of the user. Snapchat's approach is not unique; Bing and Google are also experimenting with similar advertising models in their AI chatbots.

Microsoft's Ads for Chat API, launched in May, is based on the same technology as Bing but offers partners more control and customization. Advertisers can choose the ad formats they find most suitable for their audience, allowing them to provide a more integrated and authentic user experience. Due to the novelty of the product, Microsoft invites early users to provide feedback, which will help shape the future direction of the API.

This partnership is a significant development for Microsoft's advertising division. For example, Netflix chose Microsoft last year to power its new ad-supported tier. Snapchat itself emphasizes that the sponsored links feature is still in an experimental phase, but the company is also collaborating with other partners to further enhance My AI in the future.

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