According to Business Insider, Snapchat's director of revenue operations Clement Xue came forward with the information in the Snapchat Advertising report, though Snapchat hasn't offered an official comment on the situation so far.
It looks as though it'll only utilize data collected from users while within the app, however, so if someone continually views news about Kim Kardashian or beauty products they might be targeted with celebrity updates or ads for new lipsticks or mascara, and so on.
This is an interesting move given CEO Evan Spiegel's previous comments and general stance on avoiding "creepy" ads like the ones on Facebook that seem to track you all the way around the internet or haunt you from sites you clicked on two weeks ago.
It's a huge step forward for Snapchat in terms of attracting new advertisers, however, as previously it lacked the same suite of targeting tools that Facebook, Google or even Twitter offer. It remains to be seen whether or not the "creepy" line will be crossed in the future, but hopefully that won't be the case.