Pinterest Launches Two New AI-Powered Advertising Features for Small Businesses

Pinterest has introduced two new artificial intelligence (AI) based advertising features aimed at boosting revenue by targeting small and medium-sized businesses (SMBs). The company has enhanced its existing ‘Performance Plus’ technology by launching ‘Performance Plus New Customer Acquisition’ and ‘One-Click Performance Plus Shopping’ specifically for the Shopify shopping platform.

The first feature, ‘Performance Plus NCA’, offers advertisers the ability to find new customers and control advertising budgets with greater precision. Small businesses can upload details of their existing or previous customers into the system to set new AI parameters. Pinterest’s AI system then automatically targets potential new customers who share similar interests and behavior patterns with the existing customer base, serving ads to them for the first time. According to Pinterest, internal testing showed an average 64% increase in new customer acquisition rates (conversion).

The second feature is designed specifically for merchants using the e-commerce platform Shopify. With the ‘One-Click Shopping’ technology, merchants can launch new advertising campaigns directly from Pinterest’s Ads Manager or their Shopify account with a single click. Optimal settings for advertising are automatically configured as defaults, simplifying the process for merchants. Following a below-expectation revenue performance in the first quarter of this year, Pinterest has rolled out this new AI-driven advertising strategy targeting small businesses and international markets.