Snapchat has announced a significant update with the introduction of advertisements to its main Chat tab, marking a strategic move aimed at bolstering its digital advertising business.
On Tuesday, Snap CEO Evan Spiegel revealed the inclusion of “Sponsored Snaps” alongside messages from friends, marking the first time ads will appear in the Chat tab. Disney is the launch partner for these Sponsored Snaps, allowing users to engage by replying or clicking on links for more information. This development comes amid Snapchat’s efforts to attract a broader audience and simplify its user interface.
Snapchat, despite boasting a user base of over 850 million, has faced challenges in keeping pace with competitors in the digital advertising space. The introduction of new ad placements—Sponsored Snaps and Promoted Places—aims to address this issue. Spiegel highlighted the importance of these changes in a memo, stating:
“The answer is simple: our advertising business is growing slower than our competitors.” – Evan Spiegel
In a bid to make the app more accessible, especially for older generations who find it difficult to navigate, Snapchat is testing a simplified version of the app called Simple Snapchat. This version consolidates navigation around three key icons by removing the Snap Map and Stories tabs. The goal is to prioritize taking pictures, chatting with friends, and providing short-form entertainment, aligning with Snapchat’s strategy to better compete with platforms like TikTok.
The company has faced resistance from its core audience in the past concerning major updates. The 2015 redesign, which integrated Stories between private messages, met with significant backlash from celebrities, advertisers, and users. However, the necessity of enhancing its advertising revenue has led Snapchat to explore these new avenues. Spiegel emphasized the potential benefits of these placements for advertisers:
“These placements will help us meet the goals of our advertising partners by aligning our unique insights with differentiated solutions to drive return on investment across Snapchat.” – Evan Spiegel
Snapchat is also launching “Promoted Places” on Snap Map as an innovative way for users to discover new locations. This feature complements the Sponsored Snaps and aims to enhance user engagement while providing value to advertising partners. By rolling out these features, Snapchat seeks to bridge the gap between user experience and advertising effectiveness.
Featured Image courtesy of Thought Catalog on Unsplash
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