Snap’s Inbox Ads are a Risky Bet for the App

Snapchat's recently introduced inbox Direct Message (DM) advertisements, termed as “Sponsored Snaps”, may not be welcomed cheerfully by Snap users. Frequently, the Snap inbox is considered as an exclusive, safeguarded space where messages vanish after a short span. It is mostly preferred by younger users who value privacy from adults like parents and relatives. Thus, the Snap inbox holds a precious place for them, which raises concerns about the possible adverse effects of introducing ads into this context. An example of how this could be a concern is the fact that the first three slots of the inbox are now not DMs from friends, but filled with - a promotion for Snapchat+, a link to Snap’s chatbot “My AI”, and an advertisement for “Moana 2” courtesy of Snap’s collaboration with Disney. It's also important to note that the Snap app shows nine inbox slots at once, meaning a third of the Snap inbox is filled with Snap’s promotional content and features. This could affect the experience significantly. Snap has just begun experimenting with Sponsored Snaps, partnering with a select group of advertisers. However, considering the influx of promotional content, many of the app’s 443 million daily users might find it intrusive. Although Snap’s intentions to probe these options are understandable, given a bulk of in-app activity happens within the inbox feed, and DMs are generally more responsive, and harder to overlook. It could be concluded that many marketers might want to make use of this feature, and Snapchat is looking to maximize its ad selling opportunities, especially because growth has been stagnant in its major revenue markets, North America and Europe. Therefore, efforts to generate more revenue from these audiences is crucial. However, it is uncertain if this is the appropriate strategy for Snap. For now, this is just a trial run, and Snap might potentially withdraw these promotions, maintaining the inbox in its original form. Nevertheless, it's noteworthy that Snap is taking this risk as it tirelessly searches for more avenues to increase ad revenue from the app.