Snapchat Unveils AI-Driven Ad Tools and Expands Sponsored Messaging

At this year’s NewFronts event, Snapchat introduced a slate of new advertising tools, many of which lean heavily into artificial intelligence, alongside an expanded rollout of Sponsored Snaps – its promotional messages delivered directly to user inboxes, which originally debuted in November 2024.

Among the key announcements is the introduction of AI-powered smart bidding. This feature allows advertisers to set a target cost-per-action, with Snapchat’s system automatically optimizing bids in real time to meet that goal. The company is also piloting “Smart Budget,” which automatically allocates spend toward the best-performing ad sets. Both tools are currently in alpha testing and showing early signs of promise.

In a continued push into direct messaging, Snapchat is enhancing its Sponsored Snaps program. Initially launched in November 2024, the format has not generated significant backlash from users, opening the door for more advanced use cases. New features include “First Snap,” a one-day impression tool that allows brands to send a follow-up call-to-action after a user opens their Sponsored Snap. Additionally, Sponsored Snaps will now be available through Snap’s ad auction system, and creators will be able to deliver branded messages from their own handles.

Snap is also investing in music-based marketing with a new series titled “Under the Ghost.” Hosted at its Santa Monica studio, the program will feature live musical performances, offering artists a direct connection with fans while presenting new sponsorship opportunities for brands. Packages will include Sponsored Snaps, creator content, and full-platform takeovers.

These updates come as Snapchat seeks to strengthen its advertising capabilities and highlight its utility for real-time, authentic engagement – at a time when AI and creator-led content are becoming core to digital marketing strategies.