Snap unveils AI-powered advertiser solutions, Sponsored Snap updates

Aaron Baar

Thu, May 8, 2025, 4:00 AM 4 min read

Snap announced new tools for advertisers, including updates to its Sponsored Snaps product and a suite of artificial intelligence-powered solutions, during its presentation at the Interactive Advertising Bureau’s NewFronts on Wednesday.
New Sponsored Snaps features include First Snap, a single-day takeover offering that delivers a Snap to consumers’ Chat feeds that can then open to a full-screen video and be followed by a call to action. Snap also added Web and App Auction Ads and Sponsored Snaps from Creators.
Additionally, a new AI-supported Smart Campaign Solutions includes Smart Bidding and Smart Budget tools. Snap also unveiled a “Say it in a Snap” campaign highlighting its focus on authentic moments.

Dive Insight:

Snap’s presentation at the IAB NewFronts, an annual showcase pitching marketers for bigger spending commitments, focused on how the platform has rebuilt its advertising suite to be more centered on performance while also opening new ways to reach users through popular features like Chat that were previously not available to brands. For the past year, the Snapchat owner has rolled out features including Sponsored Snaps, a brand safety and suitability suite and an expanded agency partner program. The strategy has appeared to pay off: Snapchat doubled its advertiser base in 2024.

At the NewFronts, executives pointed to an uptick in challenger brands on the emphemeral messaging service, displaying ads for popular products like Celsius energy drinks and Crumbl Cookies on screen. Snap sought to demonstrate how it connects brands with audiences more effectively while differentiating from social media rivals that have courted higher levels of controversy and regulatory scrutiny of late.

“Of course, there are monopolies to prop up, masculine energy to be exuded, measurement homework to be self-graded, platform safety to be moderated by ... the users themselves? And of course, data to be shared with platforms that have been banned, unbanned, and maybe banned again,” said Chief Business Officer Ajit Mohan, offering sly digs at Meta CEO Mark Zuckerberg and then TikTok, whose NewFronts earlier in the week arrived as a potential U.S. divestiture remains up in the air.

Snapchat centered much of the presentation in Manhattan on how it is continuing to enhance its Sponsored Snaps product focused on Chat. In addition to the new First Snap takeover feature is an ability to deliver targeted ads to people via the ads auction, allowing Snapchat users to receive highly relevant Sponsored Snaps for any advertiser using specific Goal-Based Bids specified by Snap. Additionally, advertisers can now send Sponsored Snaps directly from creators’ handles to users’ feeds.

“There’s never been an opportunity like this on Snapchat, to engage people in Chat, the tab Snapchatters use the most,” said Mohan. “In testing so far, things have started off with a bang. This has quickly become our largest single-day reach product.”

Snap is also developing AI-powered bidding and budgeting solutions for advertisers to improve outcomes. The Smart Bidding function allows advertisers to set a target cost-per-action, and the system will consistently deliver a CPA within a reasonable range of that bid. The Smart Budget tool, which is currently in alpha testing, will enable advertisers to automatically shift spending to the highest-performing ad sets within their campaigns.

The platform is also introducing Under the Ghost, a music performance series including performances and conversations that will be hosted at Snapchat’s studio in Santa Monica, California. The program will provide a sponsorship opportunity for brands to tap into music, culture and community with full-funnel packages that include Sponsored Snaps, creator content and Total Takeover placements.

Rounding out its NewFronts efforts was the launch of its “Say it in a Snap” campaign, which is meant to position Snapchat as the app for showcasing real, relatable moments. The campaign will include location-specific creative on billboards in New York City locations including Times Square, Citi Field and Madison Square Garden.

Snap reported $1.36 billion in revenue in Q1 2025, representing 14% year over year growth, per its latest earnings statement. The company attributed the increase to its direct-response advertising solutions, which grew 14% year over year and contributed 75% of the company’s total advertising revenue for the first time over the period. Total active advertisers grew 60% versus the year-ago period.

Despite positive Q1 results, Snap declined to provide Q2 guidance, citing larger economic uncertainties, a signal of the impact the current macro environment could already be having on platforms that rely on advertiser dollars.

Peter Adams contributed additional reporting to this story.

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