Shares of Snap Inc. (SNAP) are soaring 5.26% in intraday trading on Wednesday, as the social media company unveils its latest innovation in advertising technology. The surge comes on the heels of Snap's announcement of Sponsored AI Lenses, a new ad format that leverages generative AI to create personalized, immersive brand experiences for users.

The Sponsored AI Lenses represent a significant step forward in Snap's advertising capabilities. By combining advanced AI with the platform's strength in augmented reality (AR) and visual communication, Snap is offering brands a powerful tool to increase engagement and stand out in the crowded digital advertising landscape. Early adopters of the new format, including major brands like Uber and Tinder, have reported higher-than-average playtimes and increased impressions ranging from 25% to 45% in a single day.

This move is part of Snap's broader strategy to reinvigorate its brand advertising segment, which has faced challenges in recent years. By introducing innovative, high-impact ad formats, Snap aims to attract major advertisers and improve its revenue performance. The positive market reaction suggests that investors are optimistic about the potential of AI-driven advertising to differentiate Snap from competitors and drive growth in its advertising business.