Pinterest unveils AI-powered ad tools to boost campaign performance

On October 1, 2024, Pinterest announced the launch of its Performance+ suite, a collection of AI and automation tools designed to enhance advertisers' campaign performance. The announcement, made at the company's annual global advertiser summit, Pinterest Presents, marks a significant step in the platform's evolution as a full-funnel advertising solution.

AI-powered Performance+ suite targets lower-funnel results

The Performance+ suite, now available globally, focuses on three key objectives: Consideration, Conversions, and Catalog Sales. According to Bill Watkins, Pinterest Chief Revenue Officer, "Ad innovation on Pinterest has been at an all-time high. We're still the place for brands to drive discovery, but we're now delivering on lower funnel and creative too."

The new AI-driven tools aim to optimize targeting, manage budgets, and determine bidding strategies. Pinterest reports that the Performance+ campaigns reduce campaign creation time by requiring 50% fewer inputs from advertisers. Early testing results indicate that most advertisers experienced at least a 10% improvement in cost per acquisition (CPA) for Conversion and Catalog sales campaigns, or a 10% improvement in cost per click (CPC) for Consideration campaigns.

Prada's success with Performance+ campaigns

Luxury brand Prada tested the Performance+ campaigns for a new leather goods campaign in the United States. The results were impressive:

• 64% decrease in cost per action
• 30% increase in conversion rate
• 1.8x increase in return on ad spend (ROAS) for checkouts

These outcomes demonstrate the potential of the AI-powered tools to significantly enhance campaign performance for advertisers across various industries.

Generative AI enhances creative content

Pinterest is also introducing Performance+ creative, a tool that uses generative AI to transform product images automatically. This feature can convert white, blank, or flat color backgrounds into lifestyle imagery, enhancing Product Pins and potentially increasing user engagement.

Walgreens, an early adopter of this technology, applied Performance+ creative to approximately 50 products across multiple categories. The results were notable:

• 55% higher clickthrough rate
• 13% lower cost per click

These improvements were observed when comparing Pinterest-generated backgrounds to standard white backgrounds, suggesting that the AI-enhanced visuals resonate more effectively with Pinterest users.

ROAS optimization expands globally

Pinterest is expanding its Performance+ bidding for Return on Ad Spend (ROAS) to all markets for qualified advertisers. This feature analyzes thousands of signals to predict the value of potential conversions in real-time, helping advertisers maximize their investment returns. During alpha testing, most advertisers saw at least a 15% increase in ROAS using this bidding strategy.

New promotions feature targets deal-seeking shoppers

Responding to the increasing demand for discounts, Pinterest is launching a new Promotions feature. Available by request in select markets including the US, UK, Canada, Australia, France, Germany, Mexico, Brazil, and Japan, this tool aims to surface sale items more effectively to users.

Early results show that advertisers using Promotions experienced a 12.7% increase in conversions compared to ads without promotions. The feature includes:

• Personalized promotions based on user search and pin history
• Deals ads modules for increased visibility in the Home Feed

Martha Welsh, Pinterest Chief Strategy Officer, emphasized the platform's unique position, stating, "There are plenty of places online to find products and no shortage of ways to buy them, but no other platform helps you decide what you want like Pinterest."

Prose's success with promotions

Custom haircare and skincare company Prose leveraged the new Promotions feature and achieved impressive results:

• Cheaper incremental checkouts compared to standard conversion campaigns
• 48% higher clickthrough rate

These outcomes highlight the potential of combining AI-driven targeting with promotional content to drive engagement and conversions.

Key Facts

• Announcement date: October 1, 2024
• Global average discount rate during last year's holiday shopping season: 21%
• Markets where Promotions are available: US, UK, Canada, Australia, France, Germany, Mexico, Brazil, and Japan
• Improvement in cost per acquisition for most advertisers using Performance+ campaigns: At least 10%
• Increase in ROAS for most advertisers using Performance+ ROAS bidding: At least 15%
• Increase in conversions for advertisers using Promotions: 12.7%