Snapchat rolls out AI-powered ad tools, introduces smart budgeting

Snapchat has announced a suite of new advertising tools and initiatives at NewFronts 2025, including artificial intelligence (AI)-powered campaign options, expanded Sponsored Snaps, and a music-driven brand opportunity aimed at deepening user engagement.

The platform’s latest AI features include 'Smart Bidding' and 'Smart Budgeting,' designed to help advertisers optimise performance by automatically adjusting bids and allocating spend to the most effective ad sets. Snap said both features are in alpha testing and showing positive early results.

“These tools will allow advertisers to set cost-per-action targets while Snap’s systems handle real-time adjustments,” the company said in a statement.

Sponsored Snaps, ads that appear in users’ direct messages, are also being expanded. Following a limited launch last year, Snapchat will now make these placements available through its ad auction. Additionally, brands will be able to run Sponsored Snaps via creators’ handles, offering a more personalised experience.

A new feature called 'First Snap' has also been introduced, allowing advertisers to send a follow-up call-to-action to users who open a Sponsored Snap. The expansion into inbox advertising marks a significant shift, though Snap said initial user response had been largely positive.

Separately, Snapchat has launched a music-focused initiative titled 'Under the Ghost,' which will host live performances from emerging artists at its Santa Monica studio. The programme also offers brand sponsorship opportunities across various ad formats, including creator content and full-platform takeovers.

Finally, Snap unveiled a new brand campaign focused on showcasing authentic, real-time user connections, reinforcing the app’s positioning as a space for personal and immediate communication.

 

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