The fusion of artificial intelligence and personalised advertising has reached new heights with Snapchat's My AI and its recent collaboration with Microsoft. This innovative partnership promises to revolutionise how brands connect with consumers through AI-driven chat experiences.

What is Snapchat's My AI?

Snapchat introduced My AI, an AI chatbot, earlier this year to engage its vast user base. This interactive helper was designed to offer personalised assistance, ranging from suggesting dinner spots to recommending weekend getaways or supporting product searches. However, what truly sets My AI apart is integrating sponsored links within these conversations—a new approach to advertising directly within the chatbot interface.

How are other companies leveraging this new feature?

Microsoft, for instance, has already teamed up with Snapchat to amplify the potential of these sponsored links integrated into My AI. Leveraging Microsoft Advertising's Ads for Chat API, this collaboration aims to deliver targeted and relevant ads to users based on their ongoing conversations with My AI. This integration seamlessly connects users with pertinent partners, offering advertisers the opportunity to engage with potential customers precisely when they express interest in a particular product or service.

This move is not an isolated incident in the realm of AI-driven advertising. Microsoft, with its Bing Chat, has been experimenting with a similar ad integration strategy, showcasing ads from its extensive partner brands within the chat experience. Google has also ventured into this domain with Search Generative Experience, displaying product recommendations aligned with user queries.

What benefits does this partnership bring to both companies?

Snapchat's sponsored links within My AI align with this approach, presenting users with contextually relevant suggestions during conversations. Microsoft's Ads for Chat API, an extension of Bing's technology, empowers third-party partners like Snapchat to customise ad formats, ensuring a native and seamless user experience.

For Microsoft, this collaboration is yet another triumph in its expanding ad business. Powering ads for tech companies opting for alternatives to Google has proven highly profitable, as exemplified by Netflix's decision to partner with Microsoft for its ad-supported tier last year.

What is the future potential of this partnership?

What is intriguing about this partnership is its potential impact on Snapchat's user base, especially among younger Gen Z demographics. My AI could evolve into a preferred platform for product searches and service recommendations through AI-driven chats, potentially rivalling traditional search engines.

Snapchat reassures users that the Sponsored Links feature is in an early experimental phase, emphasising the company's dedication to crafting meaningful and valuable experiences for its community. Additionally, Snapchat hints at ongoing partnerships to further enhance My AI's capabilities in the future.

The collaboration between Snapchat's My AI and Microsoft's Ads for Chat API marks a significant step towards a more integrated and personalised advertising landscape. As AI continues to shape the digital realm, this partnership opens doors to a new era of targeted marketing, where conversations become conduits for discovery and engagement.

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