Cosmetic giant Coty announced it is partnering with GenAI software-as-a-service (SaaS) platform Pencil to power the development of an AI content engine.
The integration of The Brandtech Group owned tool will be led by marketing agency Jellyfish – also owned by the Brandtech Group – and will take place across Coty’s Consumer Beauty division.
Coty is the parent company of major cosmetic brands like Max Factor, CoverGirl, Rimmel, Sally Hansen, and Kylie Jenner’s beauty brand Kylie Cosmetics.
Coty said it will establish a dedicated Pencil team within the company, coming into effect July 1.
“Our brands operate in a high velocity consumer environment, but speed without control doesn’t scale,” said President of Consumer Beauty at Coty, Gordon von Bretten. “This partnership allows us to increase the pace and volume of content creation while maintaining governance, brand integrity, and data ownership.”
What does Pencil do?
Pencil was acquired by The Brandtech Group in June 2023. The platform generates video and image ads, pulling from a brand’s existing guidelines and brand library.
The tool taps into a media spend dataset to predict which ad variations are likely to perform best before being launched, and lets users choose which AI model they want to use from all popular LLMs.
According to Pencil, ads delivered through the platform typically enable advertisers to produce ads 10x faster and cheaper than traditional methods and reduce cost-per-action (CPA) by as much as 48 percent.
On the Pencil partnership with Coty, Pencil co-founder and CEO, Will Hanschell, said: “Coty has really leaned into how transformative AI can be for marketing when deployed with clarity and intent. This focus on end-to-end application at scale means the opportunity to extract value from AI and drive growth is huge.”
