Reshaping retail media for Mercado Libre with GenAI

about the company

Mercado Libre is the largest online commerce and payments ecosystem in Latin America, operating in 18 countries and offering comprehensive solutions across the entire e-commerce value chain.

HEADQUARTERS

Buenos aires, Argentina

founded

1999

industry

E-commerce

solution type

AdTech

The Challenge

For e-commerce sellers, especially SMBs, high-quality visuals are no longer a nice-to-have—they’re essential for driving clicks, conversions, and brand visibility. Yet producing compelling display ads at scale remains a major hurdle. It requires creative expertise, production resources, and constant iteration—luxuries many sellers can’t afford.

Mercado Libre, where over 80% of sellers are small and medium businesses, recognized this gap. Despite a booming retail media market with double-digit growth, most SMBs lacked access to professional ad design services or tools. Many relied on low-quality, generic visuals that limited their performance and reach. To unlock growth for its sellers and strengthen its retail media ecosystem, Mercado Libre partnered with Muttdata to reimagine ad creation—automating design without compromising quality, and empowering every seller to compete with big-brand polish.

The Solution

Muttdata collaborated with Mercado Libre to design and implement GenAds, an AI-powered product imaging solution that automates the creation of high-quality banners for display ads. Tailored for SMBs, GenAds enables sellers to access studio-quality visuals without the cost or time investment of traditional production. Built on AWS infrastructure and leveraging Stable Diffusion via Amazon Bedrock, the system generates visually compelling backgrounds by product category, then blends selected items into those scenes—fine-tuning elements like lighting, shadows, and reflections for a polished finish.

Each day, top-performing SKUs are identified using internal ranking logic. Prompts are then generated using Claude 3 Sonnet, which guides the image synthesis process. Approved banners are stored in Amazon S3, indexed in DynamoDB, and made accessible via an API that powers Mercado Libre’s ad campaign interfaces.

More than just an automation tool, GenAds redefines visual ad creation at scale. It accelerates go-to-market timelines, ensures adherence to strict advertising standards, and unlocks growth for long-tail sellers—bringing creative parity to an increasingly competitive digital marketplace.

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testimonial

“Muttdata demonstrated exceptional expertise in Generative AI, and leveraging AWS’s cutting-edge technology ensured our solution was both scalable and secure. The project was executed flawlessly, and their support was invaluable. AWS’s robust platform played a crucial role in improving our data processing and creative capabilities, with the combined efforts of Muttdata and AWS.”