Pinterest is launching Performance+, an AI-powered media buying tool similar to Meta Advantage+ and Google Performance Max. This tool aims to optimize campaign setup for maximum performance with minimal effort, according to Pinterest's chief revenue officer, Bill Watkins.
Key Features and Benefits
- Ad Revenue Growth: Pinterest's ad revenue is projected to grow by 17.2% this year, reaching $2.66 billion, up from 5.8% in 2023.
- Efficiency Improvements:
- Over 10% improvement in cost per acquisition (CPA) for conversion and catalog sales campaigns.
- More than 10% improvement in cost per click (CPC) for consideration campaigns.
- Simplified Setup: Advertisers can set inputs like budget, country, age, or product groups, and Performance+ manages the placement, reducing campaign creation time by 50%.
Market Context
Platforms like Meta, TikTok, Google, and Yahoo are increasingly using automation and machine learning to manage ad placements, promising better campaign performance despite signal loss. However, some marketers remain skeptical due to a lack of transparency about ad placements.
Future Developments
Pinterest is also testing a collage ad format to make content more shoppable and discoverable. Wayfair has seen success with this format, achieving 28% more efficient CPC and 5.4 times higher engagement compared to retail vertical benchmarks. Specific details were not disclosed.
