Meta, TikTok, Snap aim to attract advertisers at NewFronts

The news: NewFronts became a battleground for advertising dominance as Meta, TikTok, and Snap debuted new ad features designed to outmaneuver rivals in the crowded social arena.

What Meta’s up to: Meta unveiled ad products on Instagram, including a test that delivers ads against trending Instagram Reels; Trends in the Instagram Creator Marketplace, enabling advertisers to unlock insights; and a test of the Creator Marketplace API, allowing businesses to make data-based partnerships.

• Meta hopes to position itself as the best alternative to TikTok. Meta apps stand to gain a majority of lost ad dollars from a TikTok ban, but Reels engagement is lower than TikTok, requiring Meta to convince creators—and in turn, audiences and brands—that it’s the best option for short form.

How TikTok is faring: TikTok reassured advertisers about its longevity despite US ban threats, launching Pulse Core (ads targeted alongside content organized by trends, holidays, and custom user-generated content) and expanding Pulse Premiere, which places ads alongside videos from vetted publishers like Warner Bros. Discovery.

TikTok also unveiled Sponsored Solutions for branded search visibility and Content Sponsorship Packages for multi-category audience targeting.

• TikTok’s launches were aimed at sustaining advertiser and creator confidence as advertisers lose trust in the platform, evidenced by plummeting CPMs. TikTok is looking to new features to prove its value as the dominant short-form media platform.

Snap’s bid for ad dollars: Snap introduced AI Smart Bidding (enabling cost-per-action goals) and Smart Budget (allowing for automatic spending allocations for top-performing ads). The company debuted updates to Sponsored Snaps: First Snap (single-day Chat Feed takeovers to deliver brand messages), Web & App Auction Ads (targeted ads delivered through its auction system), and Sponsored Snaps from Creators, enabling creator-delivered Sponsorship Ads in the Chat Feed.

• Snap’s aim is to establish itself as a vital advertising resource. While its advertising revenues are growing steadily, Snap still struggles to prove long-term value compared with its larger rivals. The company hasn’t yet shown that its advanced tech translates into higher ROIs, and creators are more likely to opt for platforms with bigger audiences. Snap’s new features aim to curb this trend.

Our take: As economic uncertainty poses a threat to social ad spending, platforms will continue introducing features to persuade marketers to spend on their channels while trimming budgets elsewhere.

• Meta and Snap are emphasizing offerings that draw attention from TikTok, as both stand to gain from a ban. Meta’s focus on TikTok short-form lookalike Reels and Snap’s creator push are part of a broader effort to benefit from TikTok’s uncertain future.
• Meanwhile, TikTok is going all out to prove that it has a lasting future in a key market. New ad offerings and sponsorship solutions aim to keep brands and creators around.