Snapchat is testing two new advertising placements within its platform: Sponsored Snaps and Promoted Places. These placements aim to help brands reach more users on the app. Sponsored Snaps will show users a full-screen vertical video.
Users can engage with the ad by sending a direct message to the advertiser or using a call-to-action to open a link. Disney is partnering with Snapchat to test this feature. Promoted Places will display ads on the Snap Map.
This will help users discover new places. McDonald’s and Taco Bell are working with Snap to test this placement. Early testing showed a 17.6% increase in frequent Snapchat users’ visits to promoted locations.
Snap has not said how long these tests will last or when more advertisers can use them.
Snapchat’s new advertising features
The company said both ad placements will change based on feedback from users and launch partners.
Future versions may include connecting to CRM systems and using AI chatbots to facilitate communication between brands and users. These new ad placements show Snapchat’s efforts to offer brands new ways to reach users on the app, which has over 850 million users.
However, the company has had trouble growing its digital advertising business as fast as its competitors. Last month, Snap CEO Evan Spiegel said the company would launch Sponsored Snaps and Promoted Places. He wrote in a memo that these placements will help Snap meet advertisers’ goals.
They will use Snapchat’s unique insights and solutions to drive return on investment. Despite previously keeping ads ad-free, the introduction of ads to the Chat tab shows Snapchat’s challenges with advertising. The company hopes these new placements will help it better compete in the digital ad space.
