Snap Partners With Microsoft

Chronically online DTC readers know it better than everyone: AI is slowly but surely making itself known and available in a wide array of our digital tools. 

This is why Snap and Microsoft's new partnership to expand sponsored links and suggestions in Snap’s My AI conversations with users makes perfect sense.

For the uninitiated, My AI is Snap's AI-driven chat assistant powered by ChatGPT. It's designed to serve up suggestions ranging from local eateries to weekend activities.

🤷 What this partnership means for you

For brand owners and marketers, this collaboration presents another opportunity for brands to engage with potential customers and younger audiences within their AI-driven conversations.

For brands and marketers, this is your cue. This collaboration offers a direct channel to younger audiences, particularly Gen Z. 

Recent data from Rokt and Harris Poll showed a whopping 88% of Gen Z shoppers feel AI can elevate their shopping experience. It's a clear nod to the potential of AI-enhanced advertising. 

This is an ideal moment for your brand to explore AI, as upcoming generations closely monitor how generative AI can improve their shopping experiences.

🤔 Microsoft's strategic involvement

Until now, when a user engaged Snap's My AI chatbot with a query like, "Where should I have dinner tonight?" the chatbot could respond with a sponsored link from a local restaurant. Sponsored content like this intends to help advertisers reach Snap’s user base.

Previously, if you asked My AI, "Best cafes nearby?", it might have answered with a sponsored link. The core idea? Connecting advertisers with Snap's expansive user base.

With Microsoft in the mix, Snap now has access to Microsoft’s Ads for Chat API meaning My AI will also suggest Microsoft Advertising clientele.

This integration will initially roll out in the U.S and other select markets with further expansions expected in the coming months.

🤝 What's the word on third parties?

Right now, Microsoft's Ads for Chat API allows third-party collaborators to tweak ad formats and content for target audiences.

This could change however, as Microsoft is asking for feedback on the My AI integration through communication channels like the official feedback portal and their social media channels.

📈 The evolution of advertising

Microsoft initially ventured into AI-driven advertising with Bing Chat by integrating ads into user-chatbot conversations, involving nearly 8,000 Microsoft Start brands, to assess the potential for directing traffic from conversations to websites.

Google took notice of Microsoft's ambitions and entered the field of conversational AI advertising with Bard and Search Generative Experiences (SGE) soon after.

Microsoft faces steep competition from Google on all fronts, from AI to digital advertising.

It was not long ago that Google gave X advertisers access to the Google Ads auction platform and, more recently, TikTok explored options to integrate Google search results on their platform.

Since Microsoft invested $13 billion in OpenAI’s ChatGPT, they have been keen to remain at the forefront of the AI space with the technology set to lead the growth of the company for the foreseeable future. 

With big moves from Google, a new Microsoft partnership seemed inevitable. Microsoft has now taken AI-driven advertising and marketing a few steps further with the recent addition of Copilot to the Microsoft Advertising platform. 

💪 Tech giant tango

A slew of recent announcements from tech giants like Google, Microsoft, and Amazon represent a milestone in AI-driven advertising. It’s an all-you-can-eat AI buffet of opportunities for brand folks and marketers, especially when connecting with the younger squad.

As the AI landscape continues to evolve, don't be shocked to see even more mash-ups with OpenAI’s ChatGPT or Google’s Bard in the mix.

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