Snapchat Announces AI-Powered Ad Updates and Expanded Sponsored Snaps

Snapchat unveiled a variety of new advertising options at NewFronts 2025, including AI-powered budget and bidding features, enhancements to Sponsored Snaps (ads in user inboxes), a music promotion initiative, and more. Firstly, in terms of AI-powered campaigns, Snap is introducing new AI smart bidding, allowing advertisers to set a target cost-per-action for Snap's system to achieve. This will utilize Snap's response understanding to drive better outcomes, making campaigns in the app more manageable. Snap is also introducing "Smart Budget," enabling advertisers to activate automatic spending allocations to their best-performing ad sets to maximize outcomes. Both features are currently in alpha testing and showing promising results. Updates to Sponsored Snaps were also announced, with new options such as "First Snap" for a first-impression single-day offering and delivery through the ads auction. Additionally, Sponsored Snaps from creators will allow brands to send ads directly from a creator's handle. Snapchat is launching a music promotion initiative called "Under the Ghost," hosting musical performances in its studio. This initiative offers musicians a chance to connect with fans and presents sponsorship opportunities for brands. Finally, Snapchat is rolling out a promotional campaign highlighting its ability to facilitate real connections on the app. The "Snap" chant in the campaign may feel aggressive, but it effectively showcases how users are utilizing the platform to connect. These new advertising options and initiatives provide additional considerations for marketers on Snapchat.