New AI Tools Help Brands Thrive on Pinterest
Pinterest is advancing its advertising capabilities by integrating generative AI to enhance visual content for brands, joining tech giants like Google, Meta, and Amazon in this innovative shift. During its recent Pinterest Presents event, the company unveiled new automation and AI features as part of its Pinterest Performance+ offering. With these updates, brands can now transform plain or flat backgrounds into engaging, AI-driven lifestyle content, streamlining asset creation.
According to Pinterest, these advancements will allow marketers to update visuals with 50% less effort. Early results have shown a 64% reduction in cost per action and a 1.8x return on ad spend, with conversion rates improving by 30%. Bill Watkins, Pinterest’s Chief Revenue Officer, stated, “Ad innovation on Pinterest is at an all-time high. Brands no longer have to choose between building awareness or driving conversions; they can now achieve both on our platform.”
Additionally, Pinterest introduced personalized promotions, targeting users with tailored offers based on their search and pinning activity. This feature, launching ahead of the holiday season, comes at a time when average discount rates in 2023 have dropped to 21%, the lowest since the pandemic began. Advertisers who leveraged these promotions saw a 12.7% increase in conversions compared to non-users.
Generative AI’s impact on productivity is notable, with McKinsey estimating it could contribute up to $4.4 trillion annually to global productivity. In marketing, productivity could rise by 5-15% of total spend. However, McKinsey cautions against overusing AI tools, advising companies to focus on a few key use cases for optimal results.
Pinterest’s advancements align with a broader industry trend, as Google, Amazon, and Meta have also rolled out AI-powered tools to enhance image-based ads, offering brands more creative flexibility and efficiency in their marketing efforts.
