Pinterest leverages generative AI to revolutionise advertising experience

Pinterest Leverages Generative AI to Revolutionise Advertising Experience

San Francisco: Pinterest is making strides in the realm of visual web enhancement for advertisers through the innovative application of generative AI technology. At its annual Pinterest Presents event, the social media platform which specialises in image sharing, introduced a series of automation and AI features designed to enhance its Pinterest Performance+ platform. These advancements will enable brands to dynamically modify visual content by transforming bland, white, or plain backgrounds into AI-generated lifestyle content.

The company asserts that this new capability will allow marketers to update their advertising assets more efficiently, reducing the required input by 50%. The early implementation of these tools has reportedly led to a significant 64% reduction in cost per action and delivered a 1.8 times return on ad spend. Additionally, there has been a 30% improvement in conversion rates, reflecting the potential effectiveness of these AI-driven enhancements.

Moreover, Pinterest revealed other engaging advertising features at the event, including a new personalised promotions tool. This feature is set to display targeted promotions and sales to users based on their search behaviour and pinning history, potentially increasing the relevance and effectiveness of advertisements.

This initiative is timely, coinciding with the bustling holiday shopping season. Notably, the average discount rate for 2023 has lowered to 21%, marking the smallest reduction since the onset of the pandemic. According to Pinterest, advertisers who utilised these personalised promotions registered a 12.7% increase in conversions compared to those who did not employ such strategies.

Globally, the integration of generative AI is predicted to significantly impact productivity. According to consulting firm McKinsey & Company, generative AI could potentially contribute an estimated $4.4 trillion to annual global productivity. For marketers, McKinsey forecasts that this technology could boost marketing productivity by 5% to 15% of total marketing expenditure. However, McKinsey also cautions against the overuse of numerous generative AI initiatives, warning that it could lead to increased expenses without corresponding results. Instead, they recommend that companies focus on specific use cases where established generative AI tools can deliver immediate and measurable impacts.

Pinterest is not alone in deploying generative AI to refine image-based advertising. Competitors such as Google, Amazon, and Meta are also implementing similar technologies. Google provides features to alter background colours and context, while Amazon offers brands the ability to input text to specify desired background images for their products. Amazon has recently launched an AI video adverts generator as well. Meta’s generative AI features include complete image generation, background alterations, and image expansion options for its advertising clients.

These industry movements signify a broader trend towards integrating advanced AI technologies in digital marketing, aiming to enhance user experience and optimise advertising effectiveness in an increasingly competitive online marketplace.

Source: Noah Wire Services