Snapchat is implementing AI and automation tools to enhance advertising performance as it faces a slowdown in ad revenue growth and economic challenges. The company reported a total revenue of $1.34 billion for the second quarter, with only a 4% growth in core advertising revenue. Factors contributing to weak advertiser demand include changing consumer behavior and global economic instability. Increased competition from platforms like TikTok and Facebook has further pressured Snap, prompting the company to focus on AI-driven tools like Smart Campaigns to optimize ad performance.
Snap is turning to AI and automation tools to boost advertising performance amid a slowdown in ad revenue growth and increased economic pressures.
Core advertising revenue grew by only 4%, a significant deceleration compared to past performance, attributed to macroeconomic challenges and changes in consumer behavior.
There's mounting competition from platforms like TikTok and Facebook, leading advertisers to shift budgets towards these larger networks during economic uncertainty.
Snap is accelerating its investment in AI and machine learning, focusing on its Smart Campaign tools to optimize bidding and targeting.
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