Snapchat's latest advertising format gives AI chatbots the tone of sales representatives.
Snapchat is allowing brand-sponsored chatbots to enter the Chat tab.
AI chatbots have spent the last few years managing tasks like handling refunds, tracking orders, resetting passwords, answering banking inquiries, scheduling appointments, and assisting companies in reducing the size of their support teams. Now, with Snapchat’s AI Sponsored Snaps, these chatbots may be shifting toward sales.
Snap has launched AI Sponsored Snaps, a novel advertising format that integrates brand-operated AI agents into Snapchat Chat. Users can interact with these ads, posing questions, receiving suggestions, exploring services, and progressing toward actions like app installations or purchases without exiting the chat.
In the initial phase, Snap has teamed up with Experian. Its AI Sponsored Snap appears in the Chat tab and opens to a branded interface where users can inquire about credit scores, loans, credit cards, and spending patterns. The AI agent from Experian responds in a typical chat manner, but the dialogue is specifically designed to guide users toward a brand’s offerings.
Are ads transforming into sales agents?
Here’s where it gets a bit concerning. AI chatbots have already demonstrated to companies how significantly tasks can be shifted away from human support teams. AI Sponsored Snaps build on that concept and bring it nearer to the sales pipeline.
These interactions are not merely addressing simple questions. They aim to assist users in discovering products, understanding services, receiving personalized recommendations, and moving closer to a purchase. This functions similarly to a sales representative's role, especially in industries where selling is conducted through chats, calls, and guided product explanations.
Could sales teams be the next target?
Ajit Mohan, Snap’s Chief Business Officer, stated that conversation is becoming “the most valuable real estate in advertising,” with AI facilitating real-time product discovery and decision-making. This statement speaks volumes about the direction this is heading.
While users seeking quick responses may find this beneficial, employees may view the situation less favorably. AI Sponsored Snaps may begin as an advertising format, although the work appears similar. They engage with customers, resolve queries, provide recommendations, and help drive purchases. Customer support has already experienced this transition, and sales could be next.
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Snapchat's latest advertising format gives AI chatbots the tone of sales representatives.
Snapchat's AI Sponsored Snaps might appear to be a new advertising format, but they also illustrate the rapid shift of chatbots from handling complaints to pursuing sales.
