Snapchat's latest advertising format makes AI chatbots resemble sales representatives.
Snapchat is allowing brand-sponsored chatbots to enter the Chat tab.
AI chatbots have spent recent years managing refunds, tracking orders, resetting passwords, answering banking inquiries, booking appointments, and assisting brands in reducing support teams. Now, Snapchat’s AI Sponsored Snaps suggest that their next focus could be on sales.
Snap has rolled out AI Sponsored Snaps, an innovative advertising format that integrates brand-operated AI agents into Snapchat Chat. Users can click on these ads, ask questions, receive suggestions, explore services, and take actions such as app downloads or purchases without leaving the chat.
During the alpha phase, Snap has collaborated with Experian. Its AI Sponsored Snap can be found 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 manner similar to ordinary chat, but the dialogue is clearly designed to steer users toward the brand’s offerings.
Are advertisements turning into sales representatives now?
However, this development isn’t entirely positive. AI chatbots have already demonstrated to businesses how much of the workload can be shifted from human support teams. AI Sponsored Snaps take this concept and bring it closer to the sales funnel.
These chats do not just respond to random inquiries. They aim to assist users in discovering products, understanding services, receiving personalized advice, and progressing toward a purchase. This role closely resembles that of a sales associate, especially in industries where sales occur through chats, calls, and guided product presentations.
Could sales teams be the next target?
Ajit Mohan, Snap’s Chief Business Officer, stated that conversation is increasingly becoming “the most valuable real estate in advertising,” with AI aiding people in discovering products and making decisions instantly. This assertion highlights the future direction of this trend.
Users seeking quick information may find this beneficial, but employees might envision a less favorable scenario. While AI Sponsored Snaps may start as an advertising format, their functions are similar to those of customer interaction. They communicate with consumers, clarify uncertainties, offer recommendations, and lead individuals towards making purchases. Customer support has already experienced this transition, and sales could be next.
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Snapchat's latest advertising format makes AI chatbots resemble sales representatives.
Snapchat's AI Sponsored Snaps might appear to be a novel advertising format, but they also demonstrate the rapid transition of chatbots from handling complaints to pursuing sales.