Mercado Libre Achieves 25% Growth in Ad Click-through Rate Using Stability AI's Stable Diffusion
Opportunity for Latin America's largest marketplace, Mercado Libre
In e-commerce, the visual impact of product images is often the deciding factor in a successful sale. Yet, for the 80% of Mercado Libre's sellers who own small and medium-sized businesses, creating impactful display ads remains a significant challenge. The process demands time, expertise, and resources that many do not have access to.
Recognizing this gap, Mercado Libre partnered with AWS Partner Mutt Data to develop GenAds, an automated scalable solution that leverages Stability AI's Stable Diffusion models. This solution provides access to professional-grade advertising for sellers across Latin America.
Interested in enterprise deployment of generative image models for your business?
Automated End-to-End Ad Creation
GenAds uses Stability AI's Stable Diffusion to generate category-specific backgrounds tailored to different product types.
All visuals are securely stored in AWS’ infrastructure while quality control mechanisms ensure consistent brand representation across all created advertisements.
Leveraging Anthropic's Claude 3 Sonnet, the system intelligently creates image prompts that guide Stable Diffusion by combining products with contextually relevant and engaging backgrounds, automatically enhancing product ads for maximum visual appeal. The complete solution integrates directly with advertising platforms via API connections, enabling continuous performance monitoring and optimization to drive better results for sellers across the marketplace.
“A 45% increase in display ad impressions”
7 Countries, 90,000 Ads, 25% Higher CTR: The Latin American Success Story
Across seven countries including Brazil, Mexico, and Argentina, GenAds has delivered a 25% higher click-through rates (CTR) versus traditional ads, a 45% increase in display ad impressions, and has created over 90,000 product advertisements. A furniture maker in Mexico City or a small business in São Paulo can now run professional advertising campaigns with access to automated, high-quality advertising that has a measurable effect on seller growth and marketplace competition.
The Future of AI-Powered Advertising
Mercado Libre expects GenAds adoption to grow tenfold in the next six months, outpacing the retail media industry's 17.2% annual growth rate.
As GenAds continues expanding across Latin America, it stands as a powerful example of how Stable Diffusion can be leveraged to professional advertising and transform digital commerce for small and medium businesses that previously lacked access to automated, scalable marketing tools.
Getting Started
For organizations interested in utilizing Stable Diffusion to power their businesses, please contact us to inquire about an Enterprise License. You can also visit our solutions page on AWS Amazon Bedrock to start building scalable solutions.
Our flexible licensing options allow you to deploy our models in your environment with advanced customization and full control over your data.
