Microsoft rolls out new AI tool that generates instant banner ads

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Microsoft has introduced a novel AI tool designed to swiftly produce banner advertisements. Known as Retail Media Creative Studio, this innovative solution generates banner ads almost instantly by using a product’s URL and employs AI algorithms for real-time optimization.

Microsoft is set to launch Retail Media Creative Studio for preview within the Microsoft retail media platform later this month.

The significance of this development lies in its potential to streamline the collaboration between creative and media teams during the editing process. This, in turn, liberates time that can be devoted to more strategic endeavors, such as audience analysis, leading to more effective optimization.

Here’s how it functions: Advertisers can use Retail Media Creative Studio to swiftly create banner ad designs by simply inputting a product’s URL. The AI-driven tools ensure that these designs adhere to the style guidelines of each retailer, simplifying the process and reducing the need for manual adjustments or resizing.

In terms of review, Retail Media Creative Studio guarantees that retailers have the final say before the ads go live. Additionally, the platform allows different departments within a company to collaboratively review and approve the same set of banner creatives, expediting campaign launches for advertisers.

Once the banner ad campaign is live, Microsoft Retail Media deploys AI algorithms for ongoing optimization, selecting the most effective banner creative based on essential metrics like click-through rates and sales conversions. This eliminates the time-consuming process of A/B testing and has the potential to increase revenue.

Key features of Retail Media Creative Studio include the ability to:

  1. Transform a basic product photo into a lifestyle image with a simple prompt, such as “place this sofa in a cozy living room.”
  2. Generate customized headline options using preferred words and phrases.
  3. Easily crop and remove unwanted backgrounds or text from an image with a single click.
  4. Modify all elements of the banner, from imagery to headlines.

Lynne Kjolso, VP of Global Partner and Retail Media at Microsoft Advertising, stated, “We aim to unlock powerful generative AI offerings to transform retail business across personalization, efficiency, and monetization. From simplifying campaign creation to generating campaign insights, our vision is to harness the power of generative AI to deliver a more personalized shopping experience for retailers’ consumers and ultimately, improved campaign performance and program revenue.”

Original news from SearchEngineLand