Snapchat Unveils AI-Powered Ad Tools and Smart Budgeting Features

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At NewFronts 2025, Snapchat introduced a range of new advertising tools and initiatives, placing artificial intelligence at the heart of its strategy to help brands boost campaign performance. Among the most notable launches are Smart Bidding and Smart Budgeting—AI-driven features designed to automatically optimise ad spend and bidding in real-time.

Currently in alpha testing, these tools aim to improve ad efficiency by dynamically adjusting bids and allocating budget toward the best-performing ad sets. “Advertisers will be able to set cost-per-action targets while Snap’s systems manage real-time optimisation,” the company shared.

Smarter Messaging Ads and Creator Integration

Snapchat is also expanding Sponsored Snaps—ads that appear in users’ direct messages. Initially introduced in a limited rollout, these placements will now be available through Snap’s ad auction, with a new option to run them via creators’ handles. This move offers brands a more personalised and organic-feeling engagement with users.

A new feature called First Snap allows advertisers to follow up with a call-to-action message for users who engage with a Sponsored Snap, adding a second layer to inbox-based advertising. Snap noted that early user feedback on these inbox ads has been largely positive.

Music Meets Marketing: ‘Under the Ghost’

In a bid to connect more deeply with Gen Z audiences, Snapchat is also introducing Under the Ghost, a music-focused initiative spotlighting live performances by emerging artists at its Santa Monica studio. The programme includes sponsorship opportunities across multiple formats, such as creator-led content and full-platform ad takeovers.

Reaffirming Its Core: Real-Time, Real Connections

To tie it all together, Snapchat revealed a new brand campaign celebrating the app’s core value—real-time, authentic communication. The campaign reinforces Snap’s positioning as a platform built for immediate, personal connection, differentiating it from more curated or performative social media channels.

With AI-powered tools and innovative ad formats, Snapchat is making a clear push to offer advertisers smarter, more creative ways to connect with its highly engaged user base.

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