Snapchat will display ads in the app's main “Chat” tab, the company announced Tuesday. Previously, Snapchat didn't run ads in the chat tab, but now users will see “sponsored snaps” from advertisers alongside messages from friends.
The company says users will not be notified about sponsored snaps and will be able to distinguish them from regular messages. If you leave a Sponsored Snap unopened, it will eventually be removed from your inbox. If a user decides to open a sponsored snap, they can respond to the ad or click a link to learn more.
Snapchat's Sponsored Snaps launch partner is Disney.
The app will also launch “Promoted Places” on Snap Map as a way for users to discover new places. While local businesses can already advertise on Snap Map, Promoted Places looks like a way for national brands to promote and showcase all of their locations on Snap Map.
Snapchat's launch partners for this new advertising include McDonald's and Taco Bell.
Snap CEO Evan Spiegel told employees last month that the company would roll out Sponsored Snaps and Promoted Places, so the arrival of the two new ad spots is no surprise.
“These placements will help our advertising partners achieve their goals by aligning unique insights and differentiated solutions to drive return on investment across Snapchat,” Spiegel said in a note. I'm writing.
Snapchat now has more than 850 million users, and while the social network has been able to grow its user base over the years, its digital advertising business has struggled and lagged behind its competitors.
“You may be wondering why our stock price performance has lagged the broader market, even though our business has made so much progress over the last year,” Spiegel said in a note. “The answer is simple: Our advertising business is growing slower than our competitors. The growth of our digital advertising business is one of the most important inputs to our long-term revenue potential, and our investment We are concerned that our growth is not accelerating.”
The company's advertising struggles explain why Snapchat is introducing ads to the most popular parts of its platform, after previously neglecting them.