Snapchat has launched a new Commerce Power Pack offering which is designed to help retail advertisers tap into valuable engagement opportunities, and includes new artificial intelligence-powered promotions.
The main element of Snapchat’s updated commerce ads package is the expansion of its Dynamic Product Ads to Sponsored Snaps, which will enable advertisers to showcase their products directly to users via Snap DMs.
As explained by Snapchat: “DPA for Sponsored Snaps [brings] catalog product ads directly into Chat, our most-used surface with 85% of Snapchatters using it regularly. Advertisers can now surface the most relevant products directly into where Snapchatters are connecting and making decisions every day.”
Sponsored Snaps, which were launched in September 2024, were initially considered a risky bet for the app, given the potential intrusion of marketing messages in user inboxes, though Snapchat has reported good response to these promotions. In April of this year, as part of its announcement of sponsored AI chatbots in DMs, Snapchat said that Sponsored Snaps generated 22% more conversions than other ad options.
As such, expanding this option with more ad types could be helpful, while Snapchat also said that integrating brand messaging into the chat display will help brands reach users at the right moment.
“Snapchat moves with people throughout their everyday shopping journey — like receiving recommendations from friends, discovering new products and creators on Spotlight, virtually trying on products with AR, and finding places to shop on Snap Map,” Snapchat said.
Tying direct brand promotions into the same surface where they’re seeing recommendations from friends could be beneficial, especially if Snapchat is able to integrate highly relevant ads into this mix.
Snapchat is also beta testing Value Optimization, which will provide more ways for advertisers to optimize for purchases. In addition, the platform is testing third-party web optimization to integrate more data signals, as well as Omnichannel optimization, which could help drive purchases across both the web and the app via a single campaign, based on where a shopper is most likely to convert.
“Currently in alpha testing, [omnichannel optimization] gives advertisers a more flexible way to capture demand across surfaces, helping improve performance while simplifying campaign setup and decision-making,” Snapchat said.
These expanded options will provide more ways for Snapchat advertisers to improve their targeting and placement in order to get their messages in front of Snapchatters at the right time.
Though it does still feel like Snapchat could push too far on branded messages in inboxes, which could end up eroding the app’s focus on more personal connection.