Some of our 2024 predictions are already making their way into the cultural conversation through publications like Vogue and Glamour U.K., as celebrities and users embrace Pinterest predict trends like Eclectic Grandpa Fashion Looks or Western Gothic Home Design. Blue Beauty, which predicts Gen Z and millennials will embrace Blue Hughes and their makeup protein is taking off on Pinterest right now with searches related to this trend growing 125% since the report was launched. This year, we’re incorporating Pinterest’s predicts activations for both consumers and advertisers. In December, for the first time, we took our predicts trends to real life. Opening the doors to our first ever predicts pop-up shop in New York, showcasing immersive displays and shoppable items inspired by the trends.
Our predictions allow advertisers to plan ahead for new consumer interest, ensuring their products and ads are ready to meet ramping demand. Advertisers can also sponsor co-branded Pinterest Predicts content on our platform to reach targeted audiences. Pinterest Predicts is a great example of our ability to harness user behavior to show compelling trends in content that drive user engagement and provide advertisers with actionable insights they can’t find anywhere else. With that, I’d like to turn to our second strategic priority, improving monetization per user and discuss how we’re driving success for advertisers. Throughout 2023, we’ve been focused on driving performance for advertisers by rolling out our lower funnel tools, which include mobile deep linking, the API for conversions and clean rooms and most recently, Direct Link, which launched at the end of Q3 and ramped in Q4.
The percentage of revenue from advertisers who adopted at least three of these tools increased from 2% at the beginning of 2023 to 13% at our Investor Day in September to 23% by the end of the year, marking strong progress toward our goal to be a meaningful performance player in the digital ads market. One of the key product enhancements we’ve rolled out within the lower funnel suite is Direct Link, which creates a more seamless handoff for advertisers. Direct Link take users to an advertiser’s product page in just one click significantly reducing friction and improving the ability to take action. Direct Links also require little to no work by the advertiser to adopt and now cover 80% of our lower funnel revenue, up from 60% in October. We expect coverage to continue to increase over the course of Q1.
The increased performance and value we were able to drive for advertisers in Q4 was particularly impressive. We more than doubled the amount of clicks we drove to advertisers year-over-year, a substantial increase during a retailer’s most important time of year, and we were able to do so while driving high-quality engagement. Retailers are finding significant performance improvement with this format. For example, Urban Outfitters saw a 132% increase in outbound clicks and a 57% decrease in cost per click with a Direct Links enabled campaign. This is strong tangible evidence that we are creating significant real value for advertisers. This value creation comes in the form of increased clicks, lowered CPCs and therefore, higher return on ad spend from our lower funnel products.
Each time we have launched products that created meaningful advertiser value, we have seen budgets shift in our direction in the month and quarters that followed as advertisers were able to see and measure sustained performance. Given that we launched these products throughout the year, with Direct Links rolling out most recently during the holiday shopping period, much of the value capture from these new products is still in front of us, given the lag between value creation and value capture. We’ve seen the same value creation versus value capture adoption curve play out in our business already with larger, more sophisticated retailers taking advantage of products like mobile deep linking and API for conversion and subsequently growing their spend with us.
The cumulative effect of the significant improvement in Pinterest’s lower funnel and performance ad capability over the last 18 months is that we are increasingly moving from advertisers experimental and social budgets to their performance budgets, which tend to be larger and more resilient. With our improved lower funnel solutions, we know we’re driving more clicks in conversions, but performance is only as good as an advertiser’s ability to measure it. Moreover, as the industry goes through additional privacy centric changes this year with the expectation that a major browser will be deprecating third-party cookies, there is heightened urgency from agencies and advertisers to drive adoption of future-proofing measurement tools. From a targeting perspective, we believe we are well positioned relative to others due to the first-party signals we capture through user intent expressed directly on our platform.
We are a lean forward platform and relevant ads or content to our users. From a conversion visibility and measurement standpoint, we have a broad suite of solutions, which are becoming indispensable for performance advertisers to measure and optimize the value of their spend. This is why we’ve been heavily focused on adoption of our API for conversions and clean room solutions and providing more third-party measurement solutions for advertisers. On API for conversions, we’ve laid the groundwork for more adoption in 2024, including reducing the set up time for advertisers through interface updates, while integrating with 24 partners like LiveRamp, Adobe and Salesforce. Additionally, sophisticated advertisers are seeing the value of investing in clean rooms to measure campaign performance on Pinterest.
Recently, a large CPG partner enabled measurement through clean rooms and found that their Pinterest’s campaign drove a 16-point lift in incremental sales. We also offer a suite of first-party and third-party measurement tools to plug into advertisers measurement system of truth, whether it’s brand and conversion lift studies, platform metrics and insights or highly sophisticated media mix modeling and multitouch attribution studies. As we’ve discussed on previous earnings calls, we’re going through a critical shift in the industry and a top priority for our company is growing the adoption of these alternative measurement solutions this year. To do so, we’ve implemented new adoption goals into our sales force compensation structure to encourage further advertiser penetration.
We’re growing our performance optimization team who can help with technical selling, and we’re continuing to explore deeper partnerships with agencies and integrations with additional partners. In addition to format and measurement innovations, we remain focused on bringing AI-based automation to the forefront of our campaign creation experience. We have many of the components in place for a fully automated ad system including automatic bidding, campaign budget optimization and whole page optimization, which enables us to surface more relevant and performant [ph] ads when a user expresses commercial intent. These tools drive better results in aggregate for our advertisers. For example, automatic bidding covers 85% of our revenue, and whole page optimization is resulting in greater efficiencies across our full funnel.
Reducing the time and effort for advertisers on campaign set up, while improving ROI is top of mind moving forward, and we’ll see a steady progression of increased automation and easier add platform functionality throughout this year as we continue to build out these products. Next, I want to provide an update on our third-party demand efforts. Consistent with the time line we laid out at our Investor Day, Amazon ads in the US is live on search and related surfaces. And as of this quarter, we are testing it on the home feed. In addition, we always said we would have multiple partners and the third-party partners would be an important component of our overall international expansion. Today, I’m pleased to announce our next third-party ad integration with Google.
This partnership will focus on monetizing several of our currently unmonetized international markets by enabling ads to be served on Pinterest via Google’s Ad Manager. We went live a couple of weeks ago, and this is starting to ramp. Third-party ad demand is scaling as we anticipated. And while it was not a significant revenue contributor in Q4, we are now seeing it contribute more meaningfully to our growth this quarter, and we expect that to continue going forward. Our third strategic priority is continued focus on operational rigor and discipline. As I mentioned before, I’m proud of our team’s execution here as our operating expenses declined year-over-year, and we grew our EBITDA margins by over 1,400 basis points. Julie will provide more details on our future profitability outlook later in the call.
