Pinterest is set to begin making some money by selling ads called Promoted Pins.
What I love about it from a user’s perspective is that it’s subtle. The “ads” look just like all the other pins… however if you look closely you will see them clearly labelled as “Promoted Pins”.
Pinterest says that the ads will only show up in the search and category feeds on the site. Here’s a list of some of the blue chip brand names that will be participating. Currently the offer is only available to US based companies.
- ABC Family
- Banana Republic
- General Mills
- Lululemon Athletica
- Nestle (select brands)
- Old Navy
- Walt Disney Parks and Resorts
These advertisers are asked to spend a whopping $1 to $2 million on advertising. The CPM (cost per thousand impressions) rate for the ads is in the $30 to $40 range. What’s this telling you? These brands must be confident that Pinterest can drive massive engagement & web traffic… enough to provide them with a very substantial return on investment.
Don’t you think each of those brands did extensive research before they decided to fork over $1,000,000 to $2,000,000 plus the monthly fees?
What did their research tell them? Go for it.
Pinterest’s head of partnerships, Joanne Bradford, said the test is to make sure the ads are “tasteful, transparent, relevant and improved based on Pinner feedback”.
In the company’s announcement Bradford said they are keeping the test small to collect as much feedback as possible so Pinterest “continues to be a great experience for everyone”.
“Tens of millions of people have added more than 30 billion Pins to Pinterest and brands are a big part of this. Brands help people find inspiration and discover things they care about, whether it’s ideas for dinner, places to go or gifts to buy. We hope Promoted Pins give businesses of all sizes a chance to connect with more Pinners.”
Pinterest has become a marketer’s gold mine. Why? Because people are pinning stuff they love, want and need. No need to create focus groups. Pinners are literally telling you what they want to buy.
According to eMarketer:
- 34.9 million Pinterest users in the U.S. accessed the site at least once per month in 2013 and expects 15.9% growth in 2014 to about 40.1 million.
- A majority of users are female — some 30 million in 2013, compared with 4.9 million male Pinterest users.
- More than two-thirds of Pinterest users in 2013 were between the ages of 18 and 44.
If you’re not on Pinterest yet you are seriously falling behind the times.
As a matter fact 58% of online shopping is done by women according to a study by the Center for Emerging Female Leadership. They also found that 22% of women shop online at least once a day. If you have an ecommerce site then you want to be on Pinterest because their guests are on Pinterest looking for stuff to buy. Let’s not forget that women make most of the shopping decisions in their households.
In addition, Pinterest users are well-educated with high average annual incomes. A recent study of 1,000 brands by Piqora found that an average pin generates 78 cents in sales and drives two visits to company websites.
Bottom line: this commerce creating machine creates more purchases and brand engagement than any other social platform.
Over to you
Have you leveraged Pinterest in your marketing mix? If so what have been your results?
Not sure where to start with Pinterest? Get Chapter 1 from my Pinterest course for FREE or contact me for a free 30 minute business consultation to avoid wasting time.