Microsoft has joined Snapchat as a new advertising partner for the adverts inserted into My AI. This AI chatbot was first made available to all Snapchat users earlier this year. The business announced in May that it would start evaluating Sponsored Links in My AI, which provide link recommendations in tandem with the user’s interactions with the AI assistant.
For instance, according to Snap, the chatbot may provide a link sponsored by a nearby restaurant or food delivery service in response to a user’s question about where to have dinner. The user might even ask My AI to return a link from an airline or hotel if they wanted suggestions for a weekend getaway. It also suggests a local business where users should purchase the item they are considering.
Microsoft said at its advertiser event last week that Snap and Microsoft will now collaborate on these link suggestions. Snap’s Sponsored Links, powered by Microsoft Advertising’s Ads for Chat API, connect users with pertinent partners related to their conversations while enabling advertisers to contact customers at the precise moment they are interested in their product, according to Snap. Clients of Microsoft Advertising will be able to use the service in the United States and a few other countries.
The concept of transforming AI chatbot chats into a new advertising environment is not exclusive to Snap. Microsoft started experimenting with embedding advertising from its over 7,500 Microsoft Start partner businesses into the chat almost immediately after unveiling its own AI chat experience, Bing Chat, to see whether it could increase traffic from chatbot users to the publisher’s website. Soon after, Google also started experimenting with adverts that showed up in its AI chatbot, also known as the Search Generative Experience (SGE), which is used for searches in the United States. For instance, if you were looking for a new bike on Google, you might be presented with several relevant items to your search.
Given that Snap’s advertisements also take the form of Sponsored Links that are pertinent to the conversation, they function similarly to those offered by Bing and Google.
The same technology as Bing is the foundation of Microsoft’s Ads for Chat API, also released in May. Still, it gives third-party partners more power and customization over the user interface. This means that partners can select the ad types they think would best engage their audience and incorporate them in a way that feels natural to their experiences. Early adopters will also have a role in the future of the API because it is a relatively new product, and Microsoft is actively seeking feedback from individuals who are utilizing it in their apps and services, like Snap.
The advertising arrangement is yet another significant victory for Microsoft’s advertising division, which has found itself in the position of powering advertisements for other tech firms that have chosen to work with partners other than Google. For instance, last year, Netflix chose Microsoft to power its new ad-supported tier to partner with a firm that didn’t directly compete in the streaming space. Regarding My AI advertisements, the agreement may result in Snapchat becoming a site where younger Gen Z users may do AI chat searches for goods and services instead of utilizing a search engine like Google.
To ensure we provide intelligent, practical experiences for our community, Snap states the Sponsored Links function is still in “an early testing phase. The business claimed that it is also collaborating with several other partners to improve My AI in the future.
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