Microsoft Chat ad API to be utilized to showcase relevant ads in Snapchat’s popular ‘My AI” chatbot.
After the instant success of Snapchat’s newly introduced “My AI” chatbot among 750 million monthly active users, Microsoft has come forward to use the technology in the company’s favor. My AI offers Snapchat users the ability to engage in conversations with the bot to receive personalized recommendations based on their interests,
Microsoft and Snapchat have initiated a partnership to direct sponsorship links in Snapchat’s chatbot conversations. This will be executed using the Microsoft Conversational Chat Ad API, which will allow brands to promote their sponsorship amongst target audiences within AI-driven conversations.
Early tests indicate that Microsoft advertisements receive 15% more mobile impressions from Snapchat users while improving cost per acquisition. This is an extraordinary opportunity for brands, as sponsorship under AI-bot-driven conversations will be seamlessly brought to the user in ways that feel natural and undisrupted.
In today’s world, this partnership provides great exposure for the companies, adding to their journey of prospering as leading platforms with people being more inclined toward AI chatbots to resolve queries and discover information or recommendations.
This partnership is also effective in achieving Microsoft’s vision of democratizing access to generative AI. Apart from Snapchat, Microsoft has introduced its Chat ad API to other publishers and servers. For example, it was integrated into Axel Springer’s Hey chatbot to allow advertisers to reach millions of users.
The ad program is still in process as Microsoft continues to refine the application of ads in conversation according to user feedback, and the Snapchat collaboration displays the company’s eagerness to come up with new ideas for mobile advertising using AI.
The company is also busy creating new ad formats for Bing Chat. Reportedly, Microsoft is working on perfecting its new compare & decide ads that leverage AI to summarize data for users to enjoy comparison shopping with ease. More conversational ad formats will be introduced in the future, considering the inflaming demand.
The Microsoft and Snapchat partnership in the creation of an AI-powered conversation ad format is a revolutionary program to initiate a new digital ad format for digitally savvy young consumers. Microsoft is a pioneer in setting up an AI-powered advertising future, while Snapchat is providing idle terrain for the experiment.
The success of the experiment will bring about a change in the future of the advertisement. While the experiment poses a risk of hindering privacy, this invention can open futuristic doors for ad-driven conversational commerce.