Snapchat has announced updates to its advertising platform, aiming to improve revenue growth and expand its advertiser base. These changes are part of the company's plan to enhance its position in the digital advertising market.
New Features:
Ad Placements:
- Sponsored Snaps: These will appear in users' chat inboxes as optional messages.
- Promoted Places: Uses the Snap Map to help businesses reach users exploring nearby locations.
Advertiser Insights:
- Snapchat plans to combine insights from various platform features into a single, self-serve tool.
- This tool will provide recommendations based on user engagement across the platform.
AI and Machine Learning:
- Continued investment in machine learning infrastructure for ad targeting and performance.
- Focus areas include dynamic product ads, app objectives, target cost bidding, and value optimization.
Ad Buying Process:
- New tools to simplify ad buying across different placements.
- Features for audience expansion and budget optimization across ad sets.
In-App Purchases:
- Work to simplify the in-app purchase process for users.
These updates reflect Snapchat's effort to attract more small and medium-sized businesses as advertisers. The company aims to balance its revenue between brand advertising and direct response advertising, which it considers more stable.
Snapchat is using its features, such as the Snap Map and augmented reality capabilities, to differentiate its advertising offerings. The company expects these changes will help improve its advertising revenue growth.
