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Microsoft Announces the Launch of Retail Media Creative Studio

January 11th, 2024

The retail media industry is experiencing unprecedented growth, poised to reach $100 billion in the next five years, constituting over 25% of total digital media spend by 2026, as reported by BCG. Microsoft Retail Media stands at the forefront of this surge, offering a complete omnichannel retail media solution and now pioneering the use of generative AI to create new opportunities for retailers, advertisers, and consumers.

Transforming Retail Media with Generative AI

In 2022, Microsoft Retail Media announced the integration of Artificial Intelligence (AI), and now, they’re launching the Retail Media Creative Studio, leveraging generative AI. This creative studio aims to provide a comprehensive, end-to-end banner ad creative solution tailored for retail media, showcasing Microsoft’s commitment to utilizing generative AI to address the specific needs and challenges of retail media.

Elevating Creativity and Productivity

The Retail Media Creative Studio, set to be available in preview in January 2024, empowers retailers and advertisers to use generative AI for quick and captivating banner ad creation. By automating the banner creative process based on a product’s URL and aligning it with each retailer’s style guide, this innovative solution enhances creativity, productivity, and ultimately, revenue for retailers’ banner ads business.

Innovative Features of Retail Media Creative Studio

Microsoft’s Retail Media Creative Studio goes beyond easy banner generation. It acts as an everyday design companion, offering seamless banner editing with user-friendly integrated features powered by generative AI. Retailers and advertisers can transform simple product photos into eye-catching lifestyle images, generate tailor-made headlines, crop and clean up images effortlessly, and modify all banner elements until their vision comes to life.

In-Flight Optimization with AI

Once banner ad campaigns go live, Microsoft Retail Media employs AI-powered algorithms to choose and display the most effective banner creative based on key performance metrics like click-through rates (CTRs) and sales conversion rates. This in-flight optimization ensures advertisers can improve banner campaign performance without the need for extensive A/B testing, unlocking incremental revenue for retailers and advertisers.

Unleashing Generative AI’s Full Potential

Microsoft Retail Media sees Retail Media Creative Studio as just the beginning of their journey in leveraging generative AI in retail media programs. They aim to unlock powerful generative AI offerings across personalization, efficiency, and monetization, delivering a more personalized shopping experience and improving overall campaign performance and program revenue.

Microsoft’s Progress at NRF 2024: Retail’s Big Show

Microsoft Advertising, now known for its innovative solutions following acquisitions and partnerships, has been actively delivering on its vision since NRF 2023. The latest announcement involves the progress on Microsoft Retail Media In-Store, a comprehensive omnichannel solution for retailers, integrating in-store experiences to offer a more complete view of the shopper’s journey.

Microsoft Retail Media’s groundbreaking initiatives with generative AI showcase their commitment to transforming the retail media landscape. The Retail Media Creative Studio, with its user-friendly AI-powered features, sets a new standard for banner ad creation, reflecting Microsoft’s leadership in AI technology and retail advertising knowledge. As they continue to evolve and collaborate, Microsoft Retail Media is paving the way for a future of innovative retail media solutions that adapt to the changing demands of retailers, advertisers, partners, and consumers.


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