Snapchat launches AI ad tools to challenge Google and Meta dominance

Snapchat has launched Smart Campaign Solution, an AI-powered advertising suite designed to compete with Google’s Performance Max and Meta’s Advantage+ tools. The platform is targeting advertisers who are frustrated with returns from Meta and Google, positioning itself as a credible alternative rather than trying to beat the tech giants outright.

The big picture: Snap believes it doesn’t need to surpass Meta and Google entirely—it just needs to give enough underwhelmed advertisers a compelling reason to diversify their ad spending.

• Chief business officer Ajit Mohan argues that Meta and Google have become “the equivalent of broadcast television; you can’t get fired for putting money there anymore.”
• The strategy focuses on capturing advertisers’ diminishing returns from their final 15-30% of investment with the incumbent platforms.

Why this matters: Small and medium-sized businesses have been increasingly shifting budgets from larger rivals to Snapchat, signaling potential market readiness for an alternative advertising platform.

• Snap’s audience has never been the core problem—its inability to deliver measurable, repeatable performance for advertisers has been the barrier.
• The company sees an opportunity to break through advertiser inertia by targeting those actively seeking alternatives to the duopoly.

What they’re saying: Mohan emphasizes that performance-driven results will ultimately drive budget allocation decisions.

• “My theory has always been that if there is intent and finally we’re showing results, that’s when the money will move, and hopefully we’re starting to do that,” said Mohan.
• “They’re the most demanding advertisers because they won’t move [their ad budgets] unless there’s a [worthwhile] reason to move,” he said about smaller advertisers who have been shifting spend to Snap.

Key details: The Smart Campaign Solution is currently in testing phase with select advertisers, particularly targeting small and medium businesses who are most sensitive to performance metrics.

• Mohan believes the AI-powered tools could elevate Snapchat into the “tier one platform bracket” alongside Meta and Google.
• The long-term strategy focuses on reintroducing Snapchat to larger advertisers who express desire to diversify but haven’t made the leap.

The challenge ahead: While smaller advertisers are showing willingness to shift budgets, the real test will be convincing larger enterprise clients to move meaningful ad dollars away from established platforms.