Snapchat Ads have become a whole lot smarter. The platform has been rolling out new performance-driven tools aimed at helping advertisers scale campaigns with more precision and prove results fast.

Snapchat is sharpening its value proposition against TikTok and Meta with AI-powered bidding and budgeting, new creative formats like Sponsored Snaps, and performance tools such as the App Power Pack.

As Snapchat claims, Snapchatters are 34% more likely to buy a promoted product after seeing an ad on Snapchat compared to seeing the same ad on other platforms. For businesses targeting millennials and Gen Z, these updates signal stronger opportunities to capture attention and drive measurable results. 

In this article, we’ll walk through the latest Snapchat ads updates for 2025, explain what they mean for performance marketers, and show how you can start using them in your own campaigns.

Key takeaways

• Snapchat introduced AI-powered Smart Bidding and Smart Budget tools, making campaign costs more predictable and reducing manual bid/budget adjustments.
• Sponsored Snaps expanded with new formats like First Snap takeovers, Web & App Auction Ads, and creator-led campaigns, boosting authenticity and engagement.
• The App Power Pack bundles target cost bidding, Sponsored Snaps for apps, App End Cards, and Playable Ads, driving up to 25% more installs.
• A new API Eligibility Endpoint checks goal and conversion data upfront, preventing misconfigured campaigns and wasted spend.

Smarter automation with AI bidding & budget tools

In May 2025, Snapchat announced two new features at IAB NewFronts: Smart Bidding and Smart Budget, giving advertisers new ways to optimize campaigns automatically and improve results faster.

‍Smart Bidding allows marketers to set a specific cost-per-action goal, and Snapchat’s AI then automatically adjusts bids to deliver results within that target range. Campaigns become more predictable, as you know what to expect in terms of cost. They are also far more efficient, as you spend less time manually adjusting bids.

‍Smart Budget, on the other hand, is designed to reallocate ad spend toward the best-performing ads. Instead of manually shifting budgets and spending a lot of time on Ads Manager, you can now direct spend where it’s most effective.

So what does that mean in practice?

• You spend less time micromanaging bids and budgets.
• You get a clear idea of what each lead or conversion will cost.
• The budget shifts toward ads with the best results.
• Snapchat’s system handles all the heavy lifting, so running and scaling campaigns is simpler than ever. 

For more on streamlining campaign setup, check out our guide on Snapchat Ads automation.

Sponsored Snaps expansion for deeper engagement

With Sponsored Snaps, Snapchat moved ads directly into users’ Chat Feeds, putting them where people are already messaging rather than interrupting their feed.

This is smart because they look different from the traditional ads we’re used to seeing. They are designed to look less like ads and more like messages—helping you connect with your audience more authentically. 

For example, British DJ Calvin Harris used Sponsored Snaps to launch his single “Blessings” in the UK, targeting Gen Z listeners where they spend most of their time. His campaign put a video directly into users’ Chat Feed, creating a message-like interaction and making the experience feel more personal to users. The results spoke for themselves: the Sponsored Snaps reached 11.8 million people, drove a 58% boost in Spotify streams, and lifted streams on Apple Music.

To give you even more flexibility, Snapchat has added three new options in 2025: 

• First Snap: a one-day takeover that guarantees your Snapchat is the first message in the Chat Feed, opening into a full-screen video with a CTA
• Web & App Auction Ads: goal-based bidding options that target actions like purchases, sign-ups, app installs, and in-app conversions
• Sponsored Snaps from creators: campaigns delivered through a creator’s handle, incorporating influencer authenticity with paid reach

Together, these updates position Sponsored Snaps as a format designed to fight ad fatigue and drive deeper engagement where conversations are already happening.

The App Power Pack: new tools for app marketers

In August, Snapchat launched the App Power Pack, a group of features that make app campaigns more effective—but still simple. It works for both SKAN and non-SKAN campaigns, so whatever you’re promoting, you can plug it straight into your existing setup. 

The idea is simple: if you’re running a certain number of installs, the App Power Pack gives you ways to capture attention and improve conversion rates. Early testers have already seen a lift of up to 25% in installs. 

Here’s a look at what’s inside the App Power Pack:

Target cost bidding 

Set the cost per install you want, and Snapchat’s system will adjust delivery to get you closer to that goal.

Sponsored Snaps for apps

Sponsored Snaps land right in the Chat Feed, where people spend most of their time. Snapchat says these ads are already driving an 18% lift in unique converters across installs and purchases.

App End Cards

End Cards pull App Store images and add them to Snapchat Ads and Story Ads, so users get a quick preview before hitting “install.”

Playable Ads

Playable ads, which are still being tested, let users try a lightweight version of your app before they download. This is especially useful for gaming apps.

New API validation for goal and conversion eligibility

From September 23, advertisers will need to pass an eligibility check before launching campaigns on Snapchat.

A new Eligibility Endpoint in the Ads API will verify if your chosen optimization goals and conversion windows are actually supported by your pixel or app data. This means that if your data quality isn’t strong enough, the campaign won’t launch with that goal—preventing misconfigured campaigns and wasted spend.

Instead of discovering issues after the fact, you’ll know upfront, making value optimization cleaner, with stronger outcomes across campaigns.

Platform reliability challenges & market pressure

In August, a glitch in the ad-buying platform caused ads to run at discounted rates. While some advertisers benefited in the short term, the error triggered a sharp 21% drop in Snapchat’s share price, wiping out over $3 billion in market value.

The timing couldn’t have been worse, with advertisers tightening budgets and competition from TikTok and Meta heating up. Analysts have noted that Snapchat still has work to do to prove ad performance for brands that want measurable ROI.

Snap’s response has been to lean harder on features like Sponsored Snaps and automation tools. So far, they’re key differentiators in a crowded market.

Final thoughts: Where Snapchat Ads are heading next

Looking back at the past few months, Snapchat’s updates suggest the platform is heading in a positive direction. It wants to be taken seriously as a performance-driven ad channel. With features like AI-powered bidding, budget tools, App Power Pack, and the expansion of Sponsored Snaps, Snap’s focus is on automation, measurable outcomes, and formats that feel simple to users.

If you’re running cross-platform campaigns, Bïrch can help you get the most out of them. With features like workspaces, automation rules, and a library full of valuable resources, you can test Snapchat’s latest features while keeping track of every move.

Give Bïrch a go and see how smart workflows can turn new formats into rewarding results fast with a free 14-day trial.

FAQs

What are the biggest Snapchat ads updates for 2025?

Some of the latest Snapchat ad updates from 2025 include AI-powered bidding and budget tools, the App Power Pack, and the expansion of Sponsored Snaps.

Are Sponsored Snaps really effective?

Early results suggest Sponsored Snaps achieve strong results. Brands that have run campaigns have seen a significant boost in engagement.

What does the App Power Pack include?

The App Power Pack combines target cost bidding, App End Cards, Sponsored Snaps, and Playable Ads, giving marketers more tools to drive installs and conversion rates. 

Should you worry about Snapchat’s glitch incident of August 2025?

While the incident raised concern, Snap’s response has been to double down on automation and its immersive format. Reliability will remain something to watch, but the platform is still pushing forward.