Snapchat Introduces Ads to the Chat Tab in Major Monetization Push
Snapchat is rolling out two new advertising features—Sponsored Snaps in the Chat tab and Promoted Places on Snap Map—marking a significant shift in its ad strategy. The company announced the updates on Tuesday, targeting deeper engagement with its 850 million monthly active users.
Sponsored Snaps: Ads Enter the Chat Inbox
For the first time, Snapchat will display ads in its Chat tab, a previously ad-free space. Key details:
- Format: Sponsored Snaps will appear alongside messages from friends but are labeled as ads.
- User Control: Unopened ads auto-expire, while opened ones allow replies or link clicks for more information.
- Launch Partner: Disney is the first major brand testing this feature.
Promoted Places: Boosting Local Discovery
Snapchat is also expanding its Snap Map advertising with Promoted Places, enabling national brands like McDonald’s and Taco Bell to highlight all their locations. Unlike existing local business ads, this feature caters to larger chains seeking broader visibility.
Why the Change? Snap’s Ad Growth Challenge
CEO Evan Spiegel hinted at these updates last month, citing slower ad revenue growth compared to compe*****s like Meta and TikTok. In an internal memo, Spiegel emphasized:
“Our advertising business is growing slower than our compe*****s… Investors are concerned we aren’t growing faster.”
User Impact and Strategic Shift
While the move risks alienating users accustomed to an ad-free Chat experience, it aligns with Snapchat’s need to monetize its most engaging features. The company assures ads will be non-intrusive and clearly marked, balancing revenue goals with user experience.
Looking Ahead
As Snapchat navigates its advertising challenges, these new placements could unlock higher ROI for brands while testing user tolerance for ads in core app areas. The success of Sponsored Snaps and Promoted Places may shape future ad innovations on the platform.
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