Media Monday

How Snapchat's Innovative Chatbot 'My AI' Reshapes How Advertisers Interact With Gen Z

By Noelle K. , Digital Media Planner

With the emergence of apps like BeReal prioritizing authentic interactions, established social media platforms like Snapchat are under pressure to maintain their appeal to younger audiences. Fortunately, Snapchat's recent innovations position it as a frontrunner among Gen Z users, with the app projected to surpass both TikTok and Instagram with an estimated 49.5 million Gen Z users in the US by 2025 (Dixon, 2023). Snapchat's success in connecting with this demographic is attributed to its investment in research, particularly in understanding Gen Z's motivation drivers. A 2023 study reveals that Gen Z is motivated by a desire to stay updated and consume content aligned with their values, bringing them joy and driving engagement.?

While areas within the platform, such as Discover and Stories, align with the motivational factors driving Gen Z, Snapchat's latest addition goes the extra mile in satisfying the distinct needs of this demographic. Snapchat's most recent introduction, 'My AI,' stands out as a clever strategic move, leveraging OpenAI's ChatGPT technology for an innovative chatbot. This move is particularly savvy, considering that 45% of young consumers aged 13-39 in North America have engaged with a chatbot in the past year (YPulse, 2023). Furthermore, a 2022 study by Simplr revealed that Gen Z respondents held a significantly more favorable view of chatbots compared to millennials and Boomers, with 20% expressing a preference for initiating a customer interaction with a chatbot.

'My AI' was initially exclusive to paying Snapchat Plus subscribers, with CEO Evan Spiegel disclosing intentions to extend access to the bot to the platform's expansive user base of over 750 million (Heath, 2023). Snapchat's ongoing commitment to AI technologies underscores its dedication to both expanding its user base and meeting the distinct needs of Gen Z. Moreover, this investment is reshaping how brands attract and engage with this younger demographic.

For example, In September 2023, Snapchat's AI chatbot received a notable upgrade through its partnership with Microsoft, introducing sponsored links. This enhancement empowers advertisers to connect with customers precisely when they express interest, offering product recommendations seamlessly within the chatbot experience (Perez, 2023). Thus, in the context of Situation, leveraging this feature becomes advantageous for targeting younger demographics interested in exploring and buying tickets for West End or Broadway Musicals.