Pinterest, Google, and Other Internet Giants Unleash a New Era of AI-Powered Advertising

Digital marketing and advertising have been undergoing a quiet revolution ever since the rise of image and video-generative AI. Initially, there was excitement, with many predicting the swift demise of designers, directors, and production teams. Why hire humans when AI could spit out an ad in seconds?

Then reality, as it often does, rudely intervened. The flood of AI-generated ads faced backlash over concerns like potential copyright issues, accusations of plagiarism, and—perhaps most damning of all—the uncanny lack of realism. Brands quickly realized that AI wasn’t quite the magic solution they had hoped for. A case in point: Toys”R”Us tried it, and, well... you can judge the results for yourself.

According to a study by YouGov, which surveyed consumers across 17 countries, roughly half of the respondents expressed discomfort or outright disapproval of AI-generated ads.

Though fully AI-driven content still feels a bit off to many, the next evolution of AI in marketing is already sneaking its way into the mix—just in a far subtler fashion.

AI Tools to Help Creatives Produce Ads Faster and More Effectively

TikTok was the first to give creators AI-powered tools to edit their content within the app, cutting out the need for professional software like Adobe. Their Symphony Creative Studio made editing short videos on TikTok a breeze, as we mentioned before. Not to be outdone, Pinterest followed suit with its own version—Pinterest Ad Labs—offering generative AI tools that help brands create instant, platform-ready images.

Personalized Background Generation

Source: Pinterest

Collage Generation

Source: Pinterest

Take Wayfair, for example. The furniture giant used Pinterest’s AI to create collages of decor and furnishings inspired by popular trends, then turned them into shoppable ads. The result? A 28% more efficient cost per click and 5.4 times higher engagement compared to industry benchmarks. Not bad. Pinterest Ad Labs is also rolling out new AI features to streamline marketing campaign management, promising better results with 50% less effort.

Of course, TikTok and Pinterest aren't the only ones hopping on the AI train. Amazon Ads now offers AI-powered image editing, and Meta is bringing similar tools to Facebook and Instagram ads. Google, on the other hand, is integrating its ad offerings into its new AI-powered search overview, giving marketers yet another way to jump on the AI bandwagon.

Google Generative AI Ads

Source: Google

A New Age for Digital Advertising

Despite the general unease around AI-generated ads, every major social media platform has now embraced its own integrated advertising tools. This shift has firmly established a new standard in digital marketing. Just as generative AI chatbots are now commonplace for customer service, integrated ad platforms have become essential for attracting advertising dollars.

The impact on traditional advertising agencies—those that once created and managed content for brands—has yet to fully unfold, but it’s clear these platforms will nibble away at the industry's profits. Still, with each platform offering its own quirks and challenges, agencies will likely retain their place in the market for higher-quality production and managing campaigns across multiple channels.