Pinterest Introduces Generative AI and Automation Tools for Advertisers

Pinterest is now joining the cadre of tech giants like Google and Amazon by introducing generative AI tools for product imagery aimed at advertisers. During the "Pinterest Presents" advertiser event on Tuesday, the company revealed enhancements to its Pinterest Performance+ suite, encompassing automation and AI features. These upgrades will allow advertisers to provide lifestyle imagery by converting plain, white, or flat backgrounds using AI technology. This is prepared by SSP.

This generative AI capability, designed to upgrade Pinterest Product Pins, is expected to significantly boost click rates. The trend towards using AI for product imagery is picking up speed across the industry, with Amazon and Google having rolled out similar solutions almost a year ago. Advertisers accustomed to these capabilities can now leverage them on Pinterest as well.

An early adopter, Walgreens, tested Pinterest’s generative AI across 50 products in different categories and achieved a 55% higher clickthrough rate and a 13% reduction in cost-per-click compared to traditional white backgrounds.

Additional features integrated into the Pinterest Performance+ suite aim to facilitate quicker campaign creation, requiring 50% less input from advertisers. Some initial tests reported by Pinterest show advertisers achieving a 64% decrease in cost per action, a 30% increase in conversion rates, and a 1.8x return on ad spend.

Pinterest is also launching equitable tools, like Promotions, to offer discounts to users. These tools will be on hand upon advertiser request in several countries including the U.S., U.K., Canada, Australia, France, Germany, Mexico, Brazil, and Japan. Personalized Promotions and Deals ads modules will help spotlight ongoing sales and discounts specific to Pinterest users.

Moreover, the updated Pinterest Performance+ bidding system will feature optimization for the highest value, moving beyond simple metrics such as clicks or conversion volume. Now, global advertisers can access Performance+ campaigns aligned with Consideration, Conversions, or Catalog Sales objectives.

As Pinterest continues its rollout of these advanced features, they aim to marry AI and automation to provide advertisers with tools that not only enhance product visuals but also streamline campaign effectiveness during key shopping seasons like the approaching end-of-year holidays.