Creative AI company Pencil has partnered with the No. 1 ecommerce platform for businesses Shopify to provide their merchants with the latest innovation in online advertising for ecommerce, AI-generated ads. Rather than spending hours in video editing software or engaging expensive professional agencies, Shopify merchants can now generate original video ads to pitch their businesses in just a few clicks. Furthermore, AI-generated ads trained using 1st-party data from advertisers’ Meta ad accounts via the Meta Marketing API have been shown to consistently double return on ad spend for brands and halve customer acquisition costs. Shopify merchants using Pencil’s AI-generated ads will be able to discover new audiences on Meta’s platforms and grow their businesses faster.

Pencil’s AI-generated ads work because they prioritize both creativity and data. When a merchant connects their Shopify store, Pencil analyzes their brand and product information and generates a wide variety of ad ideas to pitch their products. When a merchant then connects their Meta advertising data, Pencil compares the newly generated ideas to what’s worked well in the past. Those ideas similar to past winners are highlighted to the merchant. In this way Pencil helps merchants learn what works while continuously exploring fresh new creative ideas that might resonate with audiences.

Rob Carliner, Co-founder/COO of Angela Caglia Skincare commented: “Pencil is by far the best way to create winning ads at scale by combining editing software with AI learning algorithms to effectively eliminate guesswork of making winning ad creatives… as you’re no longer dependent on agencies, Pencil gives you all the tools you need to level the playing field. The interface is easy, the results are impressive. Lots of companies claim to have built a better mousetrap, Pencil has actually done it!”

Pencil analyzed over 100 ecommerce campaigns that used AI-generated ads and found the best ads delivered an average return on ad spend (ROAS) 2x that of other ads the brands were running. One brand’s AI-generated ad campaign delivered 7x higher ROAS.

Will Hanschell, CEO and co-founder of Pencil commented: “We’re beyond excited to make our creative AI software available to the almost 2,000,000 merchants on Shopify. This direct integration makes creating content for business owners and marketers as simple as clicking a button. When up to 70% of stores’ revenues come from ads, winning with ads is incredibly important. Pencil puts the creative and analytical power of a professional agency into the hands of anyone looking to start and scale a business online.”

This partnership announcement comes hot on the heels of Pencil joining Meta’s Business Partners, a program that connects businesses to an ecosystem of advertising specialists. More than 200 million businesses worldwide use Meta’s apps to connect with customers and grow, and over 10 million of them run advertising campaigns each month.

Pencil leverages proprietary technology to generate video, derive insights and make predictions, as well as integrating the OpenAI API to generate ad copy. The OpenAI API provides access to GPT-3, one of the world’s most powerful language models. Pencil is among the companies approved to use it commercially. This approval requires strict criteria in AI safety and ethics.

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