Snapchat to put ads next to chats with friends

Snapchat will soon start “experimenting” with placing sponsored messages next to chat threads from friends, according to CEO Evan Spiegel.

These “Sponsored Snaps” from brands will appear as unread messages in Snapchat’s main Chat tab, implying that they’ll sit above messages from a person’s contacts until they’re acted on. This is the first time Snap will show ads in the most used part of its app.

In an employee memo also posted on the company’s website, Spiegel says that Sponsored Snaps will appear “without a push notification, and opening the message is optional.” It’s unclear how easy it will be to get rid of a Sponsored Snap without opening it, or if doing so will even be possible. (Snap declined to comment beyond Spiegel’s memo.)

“Sponsored Snaps empower advertisers to communicate visually with the Snapchat community, making the core functionality of Snapchat accessible to advertisers,” writes Spiegel, who goes on to note that, “As always, your conversations with friends are private and are not used for advertising purposes.”

To understand why Snap is doing this now, look no further than its stock price, which is hovering near an all-time low. Despite now reaching over 850 million monthly users globally, Snap’s ads business is still tiny compared to its biggest competitors, including Meta. Snap also still isn’t profitable.

“The growth of our digital advertising business is one of the most important inputs to our long term revenue potential, and investors are concerned that we aren’t growing faster,” writes Spiegel in his memo, which is timed to the company’s 13-year anniversary. He writes that Snap will also start letting advertisers pay to promote places in its Map tab, where Snapchat users can see the whereabouts of their friends.