Snapchat is making a big change to its platform by adding advertisements to its main Chat tab for the first time. The Chat tab used to be devoid of advertisements; however, as of right now, users can view “Sponsored Snaps” right next to their private chats. Sponsored Snaps will be distinguishable from regular messages, according to Snapchat, and they will vanish after a predetermined amount of time. Users can react to a sponsored snap or click on a link to find out more information about the offered good or service if they decide to interact with it.
Disney has been announced as the Sponsored Snaps’ launch partner, which is in line with Snapchat’s goal of working with big businesses. In addition, Snap Map’s “Promoted Places” feature is being rolled out by Snapchat, providing a fresh method for consumers to find businesses. Although local companies have already used Snap Map for advertising, this new feature will make it possible for national brands to more clearly display their locations. Taco Bell and McDonald’s are two of the initial partners for this advertisement placement.
These changes come after Snapchat CEO Evan Spiegel sent an internal message to staff members announcing that Promoted Places and Sponsored Snaps would soon be available on the app. Spiegel clarified that the goal of new ad formats is to increase Snapchat’s return on investment and assist advertisers in getting better results for its partners.
With over 850 million users, Snapchat has struggled to keep up with competitors in the rise of digital advertising. Investors are concerned because, Spiegel admitted, the site’s advertising business has expanded more slowly than its user base, despite the platform becoming more popular. Part of the company’s plan to deal with these issues and increase income is the addition of advertisements on the Chat tab.