Snapchat’s CEO, Evan Spiegel, recently announced that the platform will be rolling out a new feature called “Sponsored Snaps,” which will allow brands to place sponsored messages next to chat threads from friends. These messages will appear as unread messages in the main Chat tab, prioritizing them above messages from a user’s contacts until they are interacted with. This marks a significant shift for Snap, as it will be the first time that the app showcases ads in such a prominent location.
One of the main concerns surrounding Sponsored Snaps is how they will impact user experience and privacy on the platform. Spiegel mentioned in an employee memo that these sponsored messages will appear without a push notification, and opening them will be optional. However, it remains unclear how easy it will be to dismiss a Sponsored Snap without opening it, raising questions about intrusive advertising practices and user consent.
Spiegel justified the introduction of Sponsored Snaps by stating that they empower advertisers to visually communicate with the Snapchat community, leveraging the core functionality of the app for advertising purposes. While he emphasized that conversations with friends will remain private and won’t be utilized for advertising, the integration of ads into the Chat tab raises concerns about the commercialization of intimate communication spaces.
The decision to introduce Sponsored Snaps can be attributed to Snap’s financial performance and overall business strategy. Despite boasting over 850 million monthly users globally, Snap’s ads business lags behind its competitors, notably Meta. With the company facing pressure to boost its digital advertising revenue and address investor concerns about sluggish growth, the implementation of Sponsored Snaps and other advertising initiatives is aimed at bolstering its revenue potential and profitability.
As Snap gears up to celebrate its 13-year anniversary, the platform is exploring new avenues to monetize its user base and enhance its advertising capabilities. In addition to Sponsored Snaps, Snap will allow advertisers to pay to promote locations in its Map tab, expanding opportunities for brands to engage with Snapchat users. These developments signal a strategic shift for Snap as it navigates the competitive landscape of digital advertising and strives to secure its position in the market.