Snapchat is shifting gears to win over small- to medium-sized businesses (SMBs) by enhancing its ad platform with AI-driven tools. Recent efforts include an AI-powered Smart budget optimization feature, streamlined ad formats, and improved targeting and conversion APIs. This strategic pivot, influenced by successful models from Meta and Google, positions Snap as a cost-effective alternative for SMBs, offering CPMs around $7—lower than competitors. As concerns over TikTok linger, Snapchat aims to capture a broader audience, leveraging its rich user demographics to drive sustained growth.