Snapchat expands ad reach with new placements in chat and map

Snapchat, the popular multimedia messaging app, has announced the introduction of two new advertising placements: Sponsored Snaps in the Chat tab and Promoted Places on Snap Map. The company revealed these new features on October 8, 2024, marking a significant shift in its advertising strategy.

Sponsored Snaps

Snapchat's most notable change is the introduction of Sponsored Snaps in the app's main Chat tab. This move represents the first time the platform will display ads alongside messages from users' friends. According to Snap Inc., the parent company of Snapchat, these Sponsored Snaps will appear as unread messages in the Chat tab.

Key features of Sponsored Snaps include:

• Visual distinction from regular messages to avoid confusion
• No push notifications for ad delivery
• Optional interaction for users
• Ability for users to reply or click through to learn more
• Eventual removal if left unopened

Disney has been announced as the launch partner for Sponsored Snaps, indicating the high-profile nature of this new advertising opportunity.

Promoted Places

In addition to Sponsored Snaps, Snapchat is launching Promoted Places on Snap Map. This feature aims to help users discover new locations and businesses. While local businesses have previously had advertising options on Snap Map, Promoted Places appears to be tailored for national brands to showcase multiple locations.

McDonald's and Taco Bell have been named as the initial partners for Promoted Places, highlighting the feature's appeal to major food and beverage chains.

The business behind the move

Snapchat's decision to introduce these new ad placements comes at a critical time for the company. Despite boasting over 850 million users globally, Snap Inc. has faced challenges in growing its digital advertising business at a pace comparable to its competitors.

According to Evan Spiegel, CEO of Snap Inc., the company's advertising business growth has lagged behind that of its competitors, leading to concerns among investors. In a memo to employees, Spiegel emphasized the importance of these new ad placements in meeting the goals of advertising partners and driving return on investment across the platform.

Snapchat has stated that user privacy remains a priority. The company assures that conversations between friends will remain private and will not be used for advertising purposes. Users will have the option to interact with Sponsored Snaps, and these ads will not be accompanied by push notifications.

Snap Inc. has hinted at potential future enhancements to these new advertising features, including:

• CRM system integrations
• AI chatbot support for businesses to interact with customers through Sponsored Snaps
• Exploration of customer loyalty programs on Snap Map

The introduction of these new ad placements represents a significant shift in Snapchat's approach to monetization. It reflects the broader trend in social media platforms seeking to balance user experience with revenue generation.

Industry analysts will be closely watching how these new features impact Snapchat's advertising revenue and user engagement metrics in the coming months.

Key Facts

• Announcement date: October 8, 2024
• New features: Sponsored Snaps in Chat tab, Promoted Places on Snap Map
• Launch partners: Disney (Sponsored Snaps), McDonald's and Taco Bell (Promoted Places)
• Snapchat's user base: Over 850 million users globally
• Main objective: Boost advertising revenue and meet investor expectations