Summary of "Simple Pin Podcast: Simple ways to boost your business using Pinterest"
Episode: NEW AI Pinterest Ad Tool Performance+
Release Date: October 30, 2024
Host: Kate Ahl
Introduction
In the latest episode of the Simple Pin Podcast, host Kate Ahl delves into Pinterest's newest advertising feature, Performance Plus. Released shortly after the Pinterest Presents event, this AI-driven tool promises to simplify ad creation and enhance targeting for businesses aiming to boost their presence on the platform.
"We're going to be diving into a new Pinterest ads feature... It's called Performance Plus." [00:11]
Overview of Performance Plus
Performance Plus is unveiled as an AI-assisted ad tool designed to streamline the advertising process on Pinterest. Kate expresses a mix of excitement and apprehension about integrating AI into her ad strategies.
"Essentially, it's an AI version of running an ad... to target lower funnel performance." [00:11]
Benefits and Features
Performance Plus offers several key components aimed at enhancing ad efficiency:
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Performance Plus Creative: Allows customization of ad visuals using AI-selected backgrounds tailored to specific audience preferences. Kate highlights its effectiveness with an example from Walgreens, where adding backgrounds resulted in a 55% higher click-through rate.
"Walgreens saw a 55% higher click through rate when you added these backgrounds." [00:11]
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Performance Plus Bidding: Automates the bidding process to optimize for better returns on ad spend (ROAS).
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Performance Plus Return on Ad Spend (ROAS): Predicts the value of conversions in real-time to ensure profitable outcomes.
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Performance Plus Budgets: Simplifies budget allocation to maximize ad performance within specified limits.
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Performance Plus Targeting: Enhances audience targeting based on detailed insights, ensuring ads reach the most receptive users.
"Performance plus, like I said, which is AI, but it has five parts to it... Creative, bidding, ROAS, budgets, and targeting." [00:11]
Skepticism and Considerations
Despite the promising features, Kate remains cautiously optimistic. She emphasizes the importance of having a well-optimized sales funnel before investing in ads.
"Putting money behind something doesn't fix a broken funnel. So make sure you have these things in place before you put money behind ads." [00:11]
She also notes that while Performance Plus automates many aspects, it lacks the flexibility to manually optimize campaigns, which could be a drawback for experienced advertisers.
"You can't optimize campaigns in Performance plus, so you have to have the budget to kind of let it run and trust the algorithm." [00:11]
Performance Plus Creative
A standout feature is the Performance Plus Creative tool, which allows businesses to adapt their ad visuals to better resonate with their target audience. By using AI to select appropriate backgrounds, ads become more engaging and tailored.
"This allows you to import a background in there that's picked from AI based on what you think the targeting audience will like." [00:11]
Bidding and Targeting
Kate discusses the automated bidding and targeting features, which aim to maximize ROAS by predicting conversion values and efficiently allocating budgets. The tool is designed to target users in the consideration to conversion phases, making ads more effective in driving sales.
"Performance plus helps to drive a return on ad spend to predict the value of conversions in real time." [00:11]
Real-world Examples and Stats
Pinterest shares impressive statistics to demonstrate the effectiveness of Performance Plus:
- Timberland experienced a 50% increase in acquisition ROAS in the UK.
- Overall, there's been a 30% increase in conversion results among users implementing Performance Plus.
"With performance plus, there's been a 30% increase in conversion results. Timberland had a 50% acquisition return on ad spend in the UK, 50% increase." [00:11]
Integration with Ads Managers
Kate addresses concerns about the role of ads managers in the era of AI-driven tools like Performance Plus. She argues that while automation simplifies ad creation, the expertise of an ads manager remains invaluable for aspects like targeting, PIN image optimization, and strategic consulting.
"An ads manager doesn't just really go into your ads dashboard and build your ad. They're consulting on a lot of different things." [00:11]
Final Recommendations
Kate encourages listeners to experiment with Performance Plus, suggesting starting with a modest budget to test its efficacy. She also offers support through consultative services, emphasizing the importance of guidance when navigating new advertising tools.
"Play around with Performance Plus I think it's a really cool ad product that Pinterest has released... Remember you can hit stop. So it's not that big of a deal." [00:11]
Conclusion
The episode concludes with Kate urging business owners to leverage Performance Plus to accelerate their marketing goals on Pinterest. She invites listeners to share their experiences and engage with the Simple Pin Media community for further insights.
"I hope that you would be willing to try Pinterest ads, especially Performance plus, see what it's all about and give us your response." [00:11]
Key Takeaways:
- Performance Plus is Pinterest's new AI-driven ad tool aimed at simplifying ad creation and enhancing targeting.
- The tool comprises five main components: Creative, Bidding, ROAS, Budgets, and Targeting.
- Real-world applications show significant improvements in click-through rates and ROAS.
- While automation offers efficiency, the strategic input of ads managers remains crucial for optimal results.
- Businesses are encouraged to test Performance Plus with small budgets and seek expert guidance to maximize benefits.
For more detailed insights and to explore how Performance Plus can transform your Pinterest marketing strategy, visit Simple Pin Media or book a consult call as mentioned by Kate Ahl.