The social media platform Snapchat has launched a new advertising format. These ads, called Sponsored Snaps, will be featured in the Chat tab, distinguishable from regular messages. Initially introduced in collaboration with Disney, the ads will be displayed as full-screen vertical videos.
Unopened ads will eventually disappear over time. However, users will be able to respond or click a link for more information once they open the message. Despite having a total of 850 million users, Snapchat is exploring new ways to generate revenue, as only 11 million users have subscribed to Snapchat+.
This move by Snapchat could spark discussions about the impact on users and how intrusive the ads will be. Reactions from users regarding this new ad format are eagerly anticipated.
Additionally, Snapchat has introduced a feature called sponsored places on the Snap Map. This feature will highlight certain sponsored locations, guiding users to these venues. The program will kick off in partnership with well-known fast food brands like McDonald’s and Taco Bell. These developments are part of Snapchat’s efforts to increase advertising revenue.
Snapchat’s decision to start displaying ads alongside friends’ messages represents a significant development for several reasons. Firstly, the company’s aim to leverage its user base of 850 million more effectively for revenue generation is critical for financial sustainability. However, this change is expected to have a direct impact on the user experience.
On the other hand, how users will react to this situation remains a hot topic. The new ad format, known as Sponsored Snaps, represents a strategy that the company has not tried before. Therefore, user reactions could shape future advertising policies.
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Arwen Volkov, A graduate of the University of St. Gallen in Switzerland with a degree in International Finance, Arwen specializes in sustainable finance and green investments. She began her career at an investment bank in London, where she developed financing models for environmentally friendly projects. Known for her analytical and strategic thinking skills, Arwen is a sought-after financial consultant. In her spare time, she mentors fintech startups, contributing to their growth strategies. She is also a nature enthusiast and an amateur photographer.
