Dive Brief:
- Snapchat announced a suite of new advertising updates called the Commerce Power Pack that is designed to support advertisers during the holiday shopping season, according to details shared with Marketing Dive.
- The Commerce Power Pack includes Dynamic Product Ads for Sponsored Snaps, a discovery-focused offering that allows brands to place catalog product ads directly into Snapchat’s Chat interface.
- The suite also includes optimization tools, including Omnichannel Optimization, that are meant to help capture demand across different channels within a single campaign. The move follows the news that Snap Chief Business Officer Ajit Mohan has stepped down.
Dive Insight:
Snapchat is pushing to become more of a fixture in advertisers’ holiday marketing plans with its new Commerce Power Pack. The performance marketing products are designed to help advertisers maximize media spending while turning product discovery into action at a faster clip. As it stands, Snapchat drives a half-day faster time to conversion than other major social platforms, according to TransUnion data cited in release details.
As part of the new suite of products, Snap is expanding Dynamic Product Ads to Sponsored Snaps, enabling the use of artificial intelligence-powered recommendation models to surface brands’ products to consumers. The tool, available globally for all advertisers, allows for catalog product ads directly in Chat, the most-used surface within the Snapchat ecosystem.
The Commerce Power Pack also includes several optimization tools, including Value Optimization, which allow campaigns to optimize for return on ad spend and focus on the purchases that drive the most value. Value Optimization is currently in beta for both web and app advertisers, and can be used in tandem with Unified Attribution, a product that expanded globally last month.
Also included in the announcement is Third-Party Web Optimization, which is currently in an open beta and combines first- and third-party data signals to help advertisers optimize toward the third-party purchase outcomes they already are using to evaluate performance across platforms. In a test with partner Google Analytics, advertisers saw 23% lower third-party cost-per-purchase and 37% higher third-party return on ad spend.
Lastly, the Omnichannel Optimization tool, currently in alpha testing, is designed to capture purchases across multiple surfaces, including web and the app, within a single campaign based on where a shopper is most likely to convert. Snap will promote the Commerce Power Pack as part of a “Spend Smarter” marketing campaign that will launch across the U.S. and UK this month.
The latest move from Snap follows news that Chief Business Officer Ajit Mohan has stepped down from his role, according to a LinkedIn post. Mohan, who was appointed chief business officer in February 2025 after two years with the company, was responsible for initiatives including a revamp of Snap’s advertising suite last year to focus more on performance products.
In Mohan’s place, Snap on Tuesday announced that Ronan Harris has been named chief commercial officer, tasking the executive to lead Snap’s global advertising sales and go-to-market organization. Harris previously led Snap’s business across Europe, the Middle East and Africa for almost four years.
Parent company Snap saw revenue increase 19% year over year in Q2 to $1.6 billion, according to its latest earnings report. Ad revenue grew 9% during the period. Advertising momentum was attributed to increased business from both large North American advertisers and more small- and medium-sized businesses, along with growing interest for its AI-powered smart campaign tools.
