Driving the news: Pinterest has launched a collection of AI and automation tools designed to enhance full-funnel advertising campaigns. Unveiled at the 2024 Pinterest Presents event, Performance+ Suite helps advertisers optimize targeting, manage budgets, and maximize Return on Ad Spend.

Why it matters: The Performance+ Suite promises to make performance more innovative and efficient, requiring 50% less effort from advertisers. New features include creative enhancements, ROAS bidding, and personalized promotions.

The big picture: Generative AI for product imagery is becoming standard among major tech companies. Pinterest's move follows similar launches by Amazon and Google. The company introduced several new advertising products and display options:

• Expanded Premiere Spotlight ad units, new Showcase and Quiz ads, direct links for easier shopping, and integrations with Salesforce Commerce Cloud and Adobe Commerce.

• A Creative Studio tool for generating lifestyle imagery and a new Collages display option for users.

• Transforming flat or blank backgrounds into lifestyle imagery, enhancing Product Pins and driving more clicks.

By the numbers: Early tests of the Performance+ Suite showed significant improvements:

• 64% decrease in Cost Per Action (CPA) and a 30% increase in conversion rates.

• 1.8x ROAS with the new AI and automation features.

• Campaign creation time was cut in half with enhanced campaigns.

• An average 10% improvement in Cost Per Acquisition (CPA) and Cost Per Click (CPC), respectively.

Case studies: Specific brands have already seen notable results:

• Walgreens saw a 55% higher clickthrough rate and a 13% drop in CPC using AI-generated backgrounds.

• Prada reported a 64% decrease in CPA, a 30% increase in conversion rates, and a 1.8x increase in ROAS.

• Pandora boosted its ROAS by 73%.

• Adidas drove 40% higher revenue with Performance+ Shopping campaigns.

Between the lines: Pinterest plans to personalize every ad for every user, expanding its advertiser base beyond traditional sectors like beauty and fashion.

• Pinterest has 465 million users.

• Premiere Spotlight and Quiz ads are now available in the U.S., Australia, and countries across Europe, Asia, and South America.

What they're saying: "Brands are increasing Pinterest in their media mix, and they no longer need to choose between awareness or lower-funnel performance. Now they can have both," said Bill Watkins, Pinterest's Chief Revenue Officer.

What's next: Pinterest will roll out the Creative Studio tool for advertiser testing in the U.S. later this year. The platform is also developing a new Business Manager tool for agencies and refining its ad targeting systems. Meanwhile, new Promotions tools will offer discounts to Pinterest users across several countries, including the U.S., U.K., Canada, Australia, France, Germany, Mexico, Brazil, and Japan.