Snapchat’s answer to its sinking stock price is more ads

Snap, like Meta, relies on advertising for the overwhelming majority of its business, some 96% of its $4.6 billion in revenue was from ads last year, a figure that barely grew relative to 2022 — not ideal for a company that is still running at a heavy loss.

In a bid to grow its sales, Spiegel outlined two new experiments to get more ads in more places across the app. One change is the introduction of "Sponsored Snaps", which will now appear in the previously ad-free chat inbox. While opening these sponsored messages is optional, the move signals that no part of the Snapchat experience is off-limits when it comes to monetization. Additionally, Snap is rolling out "Promoted Places", allowing businesses to pay for greater prominence on the Snap Map — a feature people use to see what their friends are up to and keep track of their favorite spots.

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