Home Most Popular Investing SNAP, Microsoft Advertising to Power Sponsored Links in My AI

SNAP, Microsoft Advertising to Power Sponsored Links in My AI

SNAP, Microsoft Advertising to Power Sponsored Links in My AI

Snap Inc. has announced a collaboration with Microsoft Advertising to enhance the delivery of Sponsored Links in its popular artificial intelligence (AI)-powered chatbot, My AI. Through the integration of Microsoft Advertising’s Ads for Chat API, Snap aims to enable seamless and contextually relevant link placement during conversations with its community of more than 750 million monthly Snapchatters.

My AI has become a go-to consumer chatbot, attracting millions of users seeking real-world recommendations and information across various topics such as food, beauty, shopping, and more. As part of its efforts to provide personalized content, Snap recently introduced Sponsored Links within My AI, allowing brands to connect with Snapchatters and offer tailored content during their interactions.

By partnering with Microsoft Advertising, Snap provides its clients in the United States and selected markets with the opportunity to engage with Snapchatters through My AI, delivering contextually relevant links based on ongoing conversations. This collaboration aligns with Snap’s commitment to enhancing user experiences, personalization, and creating advertising opportunities for brands within its platform.

Snap’s AI Initiatives to Address Declining Ad Revenues

Snap, like other players in the advertising industry, is facing challenges in ad revenues due to fierce competition from platforms such as TikTok and Meta Platforms’ Instagram, as well as changes in Apple’s app privacy policies. To counter this decline, Snap has been investing in AI-driven initiatives to maintain user engagement.

One of these initiatives is My AI, which was launched in April and has already garnered significant user engagement. Additionally, Snapchat introduced features exclusive to its paid subscribers, such as Dreams with Friends, allowing users to create AI dream images together.

Despite facing headwinds in the operating environment and decreasing marketing budgets across industries, Snap continues to invest in its platform and explore innovative ways to connect advertisers with its unique audience. The company has introduced features like First Story, Ads in Spotlight, and Collab Studio to attract advertisers and drive revenue growth.

Although Snap has experienced a decline in ad revenues, its AI-focused strategies and initiatives are expected to contribute to its financial performance in the coming quarters. The company’s global Daily Active Users (DAUs) are projected to grow by 121.9% in 2023, and it is continuously working towards providing valuable advertising opportunities within its platform.


The partnership between Snap and Microsoft Advertising to enhance Sponsored Links in My AI demonstrates the focus on personalization and user engagement in the evolving digital advertising landscape. By leveraging AI-powered chatbots and contextual link placements, brands can connect with Snapchatters in a more targeted and relevant manner. Snap’s commitment to improving user experiences while addressing declining ad revenues positions the company for growth in the competitive digital advertising industry.