Observed Signal · Sep 25, 2023 · Partnership · Source: OnlineMarketing.de · Impact: 2/5 · Sentiment: Neutral
Microsoft Ads Sponsored Links in Snapchat My AI
Snapchat has teamed up with Microsoft Advertising to bring sponsored links into My AI, the ChatGPT-powered AI assistant embedded in the social app. The integration leverages Microsoft Advertising's Ads for Chat API to surface sponsored links relevant to conversations and direct users to participating merchants. My AI, launched in early 2023 on Snapchat and expanded to all users after a Snapchat+ phase, is one of the platform's most-used Gen AI experiences, with over 150 million users having sent more than ten billion queries; hundreds of millions can access My AI's features. The sponsored links feature is initially rolling out in the United States and a few selected markets, with advertisers invited to check their eligibility through Microsoft Advertising. The arrangement suggests Microsoft and Snapchat are exploring monetization of AI-assisted conversations and hints at broader testing across Bing Chat and other AI bot solutions.
Moderate industry relevance; collaboration between ad tech vendors and a major social platform illustrating sponsored links in an AI chat context.
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Key Takeaways & Evidence Grounding
- Microsoft Advertising and Snapchat announced a collaboration to enable Sponsored Links within My AI.
- Sponsored Links are powered by Microsoft Advertising's Ads for Chat API and link to participating merchants.
- The feature is initially available in the United States and select markets.
- My AI has over 150 million users who have sent more than ten billion queries.
Connected Companies & Entities
3 Entities mappedOntology Mapping & Concepts
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Snapchat Launches AI‑Powered Conversational Ads
Snapchat announced AI Sponsored Snaps, a new ad format that embeds brand-operated AI agents directly into user chats to enable conversational interactions with brands. The feature enters an alpha test that includes a controlled trial with Experian. Snapchat cited strong underlying engagement — more than 950 billion chats in Q1 2026 and over 500 million users who have interacted with its integrated AI “My AI” — and said existing Sponsored Snaps deliver higher conversion rates versus other placements. Snap positions the format as a shift from interruption-based advertising to native conversation-driven discovery, with the company highlighting reported performance gains and quoting Ajit Mohan, Snap Inc.’s Chief Business Officer, on chat becoming valuable ad real estate.
Snapchat launches AI Sponsored Snaps
Snapchat is rolling out a new conversational ad format called AI Sponsored Snaps that lets users chat directly with brand-run AI agents inside the app’s Chat tab. The format, which Snap says will reach its roughly 900 million monthly active users, appears as promoted Snaps in the inbox; when opened, users can ask free-form questions or choose preset prompts to interact with a brand’s agent. Conversations can surface product or travel recommendations and may include click-throughs to an advertiser’s website or app for purchase. The launch follows recent company workforce reductions—Snap cut about 1,000 roles two weeks earlier, citing investments in AI. The feature expands Snapchat’s ad product suite by embedding agentic, conversational experiences into direct messages and signals a larger industry push toward dialogic, AI-driven ad formats.
Snapchat brings Sponsored Snaps to Germany
Snapchat is rolling out its controversial chat-based advertising format, now extended with AI-powered agents, to Germany in mid‑June 2026. The AI-backed "AI Sponsored Snaps" let brands embed conversational agents directly into users' chat streams so people can ask questions, get recommendations, and interact with products without leaving the chat. Snap introduced the AI variants in April and says the original Sponsored Snaps (launched earlier) delivered around 22% higher conversions and ~20% lower cost‑per‑action in markets like the UK. The rollout will begin as an alpha test in partnership with Experian and follows Snap metrics showing massive chat activity and sizable engagement with its integrated AI "My AI."
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