Pinterest is working on improving its understanding of its users by patenting a system called “context-based advertisement prediction.” This system uses artificial intelligence (AI) to analyze a user’s activity and profile data, including demographic information, subscriptions, purchase history, and clickthrough history. It also considers the user’s current query and the context of the content near where the ad would be placed. By using deep neural networks, the system predicts how likely a user will interact with the ad by assigning relevance scores. The system also takes into account previous search results to determine where the ad would fit in the context of the search.
The goal of this system is to show highly specific ads to users. However, Pinterest also tracks the performance of these ads, including clickthrough and purchase rates, to improve the accuracy and effectiveness of future ads. The company believes that irrelevant and questionable ads can negatively impact the user experience.
Pinterest has been focusing on monetizing its platform and plans to invest in shopping technology. By utilizing AI tools like computer vision, machine learning, and personalization, Pinterest aims to enhance the shopping experience and track user behavior. The company recently filed a patent application for a system that uses users’ emails (with permission) to deliver better content.
Improving the relevance of ads could greatly benefit Pinterest’s shopping ambitions. AI-based personalization can make ads more engaging and enrich the user experience. While contextual advertising is not a new concept, it is a valuable tool for advertisers to maximize their impact. Other companies have also filed patents for similar tools, and many companies are likely using AI to gain insights into their customers.
Pinterest reported an increase in sales but also experienced growing expenses. Implementing AI-based tools for shopping and ads could help boost the company’s revenue during a challenging time for digital advertising. While some experts believe that this technology is not unique, gaining a deep understanding of user habits is crucial for Pinterest’s plan to make every pin shoppable.