Snapchat Announces AI-Powered Ad Updates and Expanded Sponsored Snaps

Snapchat has outlined a range of new ad options at NewFronts 2025, including AI-powered budget and bidding options, updates to Sponsored Snaps (its inbox ads), a new music promotion initiative, and more.

First off, on AI-powered campaigns. Snap’s adding new AI smart bidding, which will enable advertisers to set a target cost-per-action that Snap’s system will then set out to achieve.

The process will utilize Snap’s expanded response understanding to drive better outcomes within your chosen parameters, ensuring more manageable campaigns in the app.

Most platforms are adding similar, with evolving ad systems now better able to detect and determine outcomes in real-time, which provides more opportunity for automated bids. Snap’s now catching up, which will add another consideration for your campaigns.

Along the same line, Snap’s also adding “Smart Budget,” which will enable advertisers to activate automatic spending allocations to their highest-performing ad sets within, helping to maximize outcomes.

Snap says that both elements are currently in alpha testing, and are showing encouraging performance.

Snapchat’s also announced some updates for Sponsored Snaps, which enable advertisers to deliver promotions direct into user inboxes.

After launching the first Sponsored Snap campaign back in November (and not seeing a huge backlash from users about ads appearing in their DMs), Snap’s now providing more ways to use the option to expand your promotional reach.

“First Snap,” for example, is “a first-impression single-day offering,” which will enable brands to send a follow-up CTA to users who’ve opened their Sponsored Snap.

That’ll provide an additional option to capitalize on your Snap promotions, within the more engaging DM window.

Snap’s also beginning to deliver Sponsored Snaps via the ads auction, as opposed to running defined campaigns, while it’s also rolling out Sponsored Snaps from creators, which will enable brands to send a Sponsored Snap direct from a creators’ handle.

Ads in Snap DMs still feels a little risky, and something that may not be overly well-received by Snap users. But clearly, with the right controls and considerations in place, this can be a beneficial offering, and these new options provide more considerations on this front.  

Snapchat’s also launching a new music promotion initiative, called “Under the Ghost,” which will see Snap hosting musical performance in its Santa Monica studio.

As per Snap:

“For artists looking to connect directly and authentically with their fans, Under the Ghost gives musicians the chance to reach fans where they’re at. Under the Ghost also presents a strategic opportunity for brands. Future shows will provide unique sponsorship opportunities via full-funnel media packages, including Sponsored Snaps, creator content, Total Takeover placements and more.”

Finally, Snapchat’s also launching a new promotional push, which is designed to showcase its power to facilitate connection around real moments.

The recurring “Snap” chant feels a little aggressive, but the campaign does succeed in showcasing how people are actually using the app to connect.

Some additional considerations for Snap marketers, which could factor into your planning.

You can read more about Snap’s NewFronts updates here.