Pinterest is making waves in the digital advertising space with its newly launched generative AI tools. These new capabilities have been designed specifically to enhance product imagery for advertisers, creating a more captivating and effective marketing experience on the platform. With these innovative tools, Pinterest aims to revolutionize how products are presented, ultimately boosting engagement and sales for advertisers. In this article, we dive deep into Pinterest’s latest move, analyzing how their generative AI tools are set to transform product imagery and help advertisers make a greater impact.
The Rise of Generative AI in Advertising
The advertising industry has been witnessing a massive shift with the introduction of generative AI technologies. Generative AI, which involves artificial intelligence capable of generating new content, has been a game-changer for many digital marketing platforms. By offering features such as text generation, image enhancement, and background transformations, generative AI has enabled advertisers to create visually stunning and contextually appropriate imagery at a much lower cost and time commitment.
Pinterest has now joined the ranks of major players like Google and Amazon, rolling out generative AI tools that help advertisers enhance product imagery. The key feature of Pinterest’s new generative AI tool is its ability to transform white, blank, or flat product backgrounds into lifestyle images that evoke a sense of context and realism. This ability makes product pins more visually appealing, which can lead to higher user engagement and clickthrough rates (CTR).
Pinterest Presents: A New Approach to Product Imagery
Pinterest introduced these new generative AI tools at its “Pinterest Presents” event for advertisers. The new tools are part of the Pinterest Performance+ suite, which includes automation and AI features to help advertisers create more compelling ads. The AI tools allow advertisers to turn a simple, uninspiring product image with a plain white background into an attractive lifestyle image that showcases the product in use.
For example, instead of showing a generic photo of a piece of furniture on a white background, advertisers can now use Pinterest’s generative AI to create an image of that furniture in a cozy living room setting. By providing users with a more visually engaging experience, these AI tools help products feel more relatable and desirable.
Pinterest’s decision to incorporate generative AI tools for product imagery is in line with the growing trend of AI-driven content creation in the advertising industry. These advancements enable advertisers to create high-quality, context-rich images without the need for a dedicated photoshoot or a professional studio setup, making the process more cost-effective and efficient.
How Generative AI Tools Benefit Advertisers
The new generative AI tools introduced by Pinterest offer several advantages for advertisers:
1. Enhanced Visual Appeal
With the ability to transform a simple product image into a vibrant lifestyle image, Pinterest’s generative AI tools help enhance the visual appeal of products. Instead of a flat, boring image, advertisers can now create a product image that sparks an emotional response from potential customers. This increased visual appeal can significantly improve engagement metrics such as CTR and conversion rates.
2. Improved Efficiency
Creating professional product imagery is often a time-consuming and costly endeavor. With Pinterest’s generative AI tools, advertisers can create visually stunning images within minutes. There’s no need to hire photographers, rent a studio, or invest in expensive equipment. The entire process can be automated, making it far more efficient than traditional methods.
3. Personalization and Context
The generative AI tools also allow for a higher degree of personalization and contextualization. Advertisers can generate product imagery that is customized to specific user preferences, seasons, or events. This level of personalization helps make product pins more relevant to the end-user, leading to improved engagement.
4. Cost Reduction
By using AI to create stunning product images, advertisers can save significantly on production costs. Traditional photo shoots are expensive and require considerable resources, but with generative AI, all it takes is a simple prompt. This is especially beneficial for small to medium-sized businesses that may not have the budget for elaborate photoshoots.
Walgreens’ Success Story: Early Adoption of Pinterest’s GenAI Tools
One of the early adopters of Pinterest’s generative AI technology was the popular drug store chain, Walgreens. Walgreens utilized Pinterest’s AI tools across 50 products spanning multiple categories. Instead of using plain product images with white backgrounds, Walgreens used the generative AI features to add contextual and lifestyle backgrounds to its product pins.
The results were impressive. Walgreens saw a 55% higher clickthrough rate (CTR) and a 13% reduction in cost-per-click (CPC) compared to using standard white backgrounds. The addition of lifestyle backgrounds made the products appear more appealing, relatable, and interesting to potential buyers, leading to better overall performance.
How Pinterest’s GenAI Tools Compare to Competitors
Pinterest isn’t the first major platform to introduce generative AI tools for advertisers. Amazon and Google have also rolled out similar features, allowing advertisers to enhance product images with AI-generated backgrounds. However, Pinterest’s offering stands out due to the platform’s strong focus on visual inspiration and discovery.
Amazon’s Approach
Amazon was among the first to introduce AI-driven product imagery enhancement tools, allowing advertisers to describe the type of background they want for their product images. Amazon’s generative AI tools are primarily focused on helping advertisers create visually appealing images that can enhance product listings and drive more sales.
Google’s Take
Google, too, joined the bandwagon, offering advertisers tools to easily change the backgrounds of product images. Google’s approach aims to help advertisers create customized product imagery that matches the overall theme of their campaigns, making it a valuable tool for Google Shopping and other display ad formats.
Pinterest’s Edge
Pinterest, however, offers a unique advantage. Unlike Amazon or Google, Pinterest is a platform built around discovery and inspiration, and users often come to Pinterest looking for ideas. By enhancing product pins with lifestyle imagery, Pinterest leverages its role as an inspiration platform to drive conversions. Users are more likely to engage with an ad that shows a product in a context that inspires them—whether it’s a piece of furniture in a beautifully designed living room or a trendy outfit styled in a unique way.
Personalized Promotions: Adding Value to the Ad Experience
In addition to generative AI tools for product imagery, Pinterest has also introduced “Promotions” to enhance the value of its advertising solutions. Personalized Promotions and Deals are designed to offer discounts and personalized deals directly to users on Pinterest. This approach makes it easier for advertisers to surface sales and discounts to their target audience, further enhancing user engagement.
Promotions will be available upon advertiser request in countries including the United States, United Kingdom, Canada, Australia, France, Germany, Mexico, Brazil, and Japan. By offering these promotions, Pinterest is making it easier for advertisers to turn browsing users into buyers, ultimately leading to better conversion rates.
Early Test Results: Promising Outcomes for Advertisers
Early tests of Pinterest’s generative AI tools have produced promising outcomes for advertisers. According to Pinterest, advertisers using these tools experienced a 64% decrease in cost per action (CPA) and a 30% increase in conversion rates. Additionally, there was a 1.8x return on ad spend (ROAS) for advertisers who leveraged the Pinterest Performance+ suite.
The ability to create visually appealing and contextually relevant product imagery has proven to be a key driver of these improved metrics. Advertisers are able to create a stronger connection with their audience, leading to higher engagement, better clickthrough rates, and ultimately more conversions.
A Look at Pinterest Performance+ Bidding and Campaign Objectives
Pinterest is also introducing enhancements to its Pinterest Performance+ bidding. Previously, bidding could be optimized for clicks or conversion volume, but now, advertisers will also have the ability to optimize for the highest value. This means advertisers can prioritize the highest value actions, such as purchases, over other campaign objectives, helping to maximize the return on their ad spend.
All global advertisers now have access to Performance+ campaigns for consideration, conversions, or catalog sales objectives, providing more flexibility to achieve specific goals. By using generative AI tools alongside these new bidding options, advertisers can create highly optimized campaigns that deliver significant value.
How Pinterest’s GenAI Tools Align with Consumer Behavior
Pinterest is fundamentally a visual discovery platform. People visit Pinterest to seek inspiration—whether it’s for home decor, fashion, recipes, or DIY projects. This makes Pinterest an ideal platform for showcasing products in an inspiring and visually captivating manner. By adding generative AI tools that enhance product imagery, Pinterest is creating an environment where users are more likely to discover and engage with products that spark their interest.
Leveraging the Power of Visual Context
Research has shown that consumers are more likely to engage with products that are shown in context. For example, a person looking to buy new kitchenware is more likely to click on an ad that shows those products being used in a beautiful kitchen setting, rather than an image of the product alone. Pinterest’s generative AI tools make it possible for advertisers to leverage this power of visual context, making product pins more relatable and inspiring.
Boosting User Engagement and Purchase Intent
With Pinterest’s generative AI tools, product imagery is not just about showing the features of a product—it’s about telling a story. By showing products in real-life scenarios, advertisers can build an emotional connection with users, increasing purchase intent. When a user sees a beautifully designed living room that includes the advertised product, they are more likely to imagine how that product would fit into their own space and make a purchase.
The Future of Advertising on Pinterest
Pinterest’s introduction of generative AI tools is a significant step toward making the platform even more effective for advertisers. By providing tools that enhance product imagery, personalize promotions, and optimize ad campaigns, Pinterest is positioning itself as a leading player in the digital advertising landscape.
As more advertisers adopt generative AI tools, we can expect a shift in the quality of product imagery across the platform. Products will no longer be showcased with plain, uninspiring backgrounds—instead, they will be presented in a way that inspires and engages users. This shift will ultimately benefit both advertisers and consumers, as it will lead to more engaging ads, higher conversion rates, and a better user experience.
Conclusion: The Impact of Generative AI on Pinterest Advertising
Pinterest’s new generative AI tools represent an exciting evolution in the world of digital advertising. By enhancing product imagery and creating visually compelling lifestyle images, these tools help advertisers make a greater impact on potential customers. The early success seen by brands like Walgreens demonstrates the effectiveness of these tools, with significant improvements in clickthrough rates, cost-per-click, and overall ad performance.
As generative AI continues to evolve, Pinterest’s innovative approach to product imagery is likely to set new standards in the advertising industry. Advertisers looking to make their products stand out, engage users, and drive conversions should consider leveraging Pinterest’s new generative AI tools. With the ability to create visually stunning and personalized product images, Pinterest is paving the way for a more engaging and effective advertising experience.
