Snap Inc., maker of the Snapchat app, is testing how a popular new artificial intelligence chatbot can boost its advertising business.
More than 150 million people, about 20% of Snapchat’s monthly users, have sent 10 billion messages to a chatbot called My AI since it was introduced at the end of February, the company said Thursday. Our users are asking us questions about everything from skin care recommendations to the latest sports car details.
My AI, which calls itself a “virtual friend in Snapchat,” is already helping Snap diversify its revenue streams in a way many social media companies have struggled through paid subscriptions. After the feature was first released to paying users of the app, Snap’s total subscriber count grew to more than 3 million in April.
In an even more profitable way to boost revenue, Snap is using what it learned from interacting with chatbots to improve its advertising business, which makes up the bulk of the company’s revenue. Snap’s advertising business has been struggling, with the company reporting its first-ever sales decline in the first quarter. My AI went live to all his Snapchat users two months ago, but the flood of messages could help his Snap improve how it personalizes ads.
Snap and its peers are still recovering from Apple Inc.’s two-year-old privacy policy change, which significantly reduced the ability to track ads and target specific users on its apps. on the way. This has forced social media companies to come up with new ways to learn about individual users’ interests based on their in-app activity.
Snapchat’s core function is private person-to-person messaging, giving the company little insight into user activity. Instead, Snap mostly gleaned cues from videos users watched in Stories published by the app and in Spotlight video feeds. Now, Snap is using his conversations with My AI to start targeting his commercials based on user interests.
The Santa Monica, Calif.-based company has also begun testing embedding sponsored links from advertisers into conversations with My AI. That could eventually mean including product links in conversations about clothing and beauty, and there are already over 28 million chats with My AI among users in the US, India, France and the UK. It is said that it is being done.
Welcome to the chatbot era
Since OpenAI released the ChatGPT chatbot, companies across industries are excited about the potential of generative AI. Many of the hottest consumer applications come in the form of chatbots that speak in a human-like tone and spit out answers faster than a human can search the internet. Alphabet Inc.’s Google on Wednesday unveiled a new generative AI tool for shopping that helps consumers find products and travel destinations.
Outside of the advertising business, My AI Conversations also improved Snap’s basic ranking model, the algorithms used to surface the app’s most personalized content, lenses, and photo and video filters to specific users. It also helps to The aim is to induce users to spend more time in your app.
“We see great potential in My AI to improve the relevance of the content we deliver to Snapchatter across the service. Whether that means it or not,” said Rob Wilk, president of Americas at Snap. said in an email.
Marketers are more likely to spend to place digital ads to users they know are interested in their products. Snap has already positioned My AI as a resource that asks users for recommendations before chatting with a pop-up informing them that their conversation may be used to personalize their Snapchat experience.
Conversations have become more focused on areas of interest and specific brands. When it comes to cars, so far he’s been talked about in over 65 million chats, of which nearly 8 million of them are about specific brands like his BMW, Kia, Ford and Volkswagen. It was something. Or for food, McDonald’s is the subject of his 5 million chats with My AI.
By Alex Barinca
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