Microsoft rolls out new AI tool that generates instant banner ads

Microsoft is launching a new AI-powered solution that automatically generates banner ads in seconds.

Retail Media Creative Studio will be available in preview within the Microsoft retail media platform later this month.

Why we care. This solution has the potential to minimize the back-and-forth between creative and media teams during editing tasks, freeing up time for increased investment in strategic activities, such as audience analysis, to enhance optimization effectiveness.

How it works. Retail Media Creative Studio enables advertisers to generate banner ad creatives in seconds simply by inputting a product’s URL. The generative AI tools ensure that these creatives conform to each retailer’s style guide, streamlining the process and minimizing the necessity for manual resizing or frequent adjustments.

Review. The review process in Retail Media Creative Studio ensures that retailers have the final say before ads go live. The platform also enables various company departments to jointly review and approve the same set of banner creatives, facilitating faster campaign launches for advertisers.

Automated optimization. Once the banner ad campaign is live, Microsoft Retail Media uses AI algorithms for in-flight optimization, selecting the most effective banner creative based on key metrics like click-through rates and sales conversions. This eliminates the need for time-consuming A/B testing and can increase revenue.

Highlights. Advertisers can use Retail Media Creative Studio to:

• Transform a simple product photo into a lifestyle image with a simple prompt such as “put this sofa in a cozy living room.”
• Generate tailor-made headline options using preferred words and phrases.
• Crop and clean up any unwanted background or words in an image with a single click.
• Modify all banner elements from imagery to headlines.

What Microsoft is saying. Lynne Kjolso, VP of Global Partner and Retail Media, Microsoft Advertising, said in a statement:

• “We aim to unlock powerful generative AI offerings to transform retail business across personalization, efficiency, and monetization.”
• “From simplifying campaign creation through 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.”

Deep dive. Read Microsoft’s announcement in full for more information.