Retailers: Are you paying attention to Pinterest yet?
A few months back, we wrote that Pinterest’s Rich Pins were the company’s first $1 billion feature. Today’s release of Price Drop Alerts shows just how powerful rich pin data can be. With Price Drop alerts, Pinterest will now notify pinners when an item they’ve pinned has seen a reduction in price. Here’s an example:
There’s already an abundance of data to show that Pinterest produces more valuable traffic than other social networks, and this feature is only going to widen that gap.
Let’s do the math. For every 1 billion pins on Pinterest, let’s assume…
- 10% of the pins contain products –> 100 million product pins
- 1% of the prices of those items see a price reduction in a given month –> 1 million alerts triggered per month
- 1% of the pinners alerted purchase the item at the lower price –> 10,000 purchases
- Average shopping cart is worth $179 (see slide 17)
- That means $21.5M per year in incremental revenue opportunity per billion pins on Pinterest.
- With optimization of the feature, that revenue potential could likely grow another 5-10x, too.
Now ask yourself: How many billions of pins are there on Pinterest? How many will there be in 2 years? 5 years? 10 years?
And most importantly – How much of that additional potential revenue from Pinterest are you capturing?
If you aren’t already submitting Rich Pin data, you’re not capturing any of that added value. If you’re not using Pinterest, you’re definitely not. And, you can bet this Price Drop Alerts feature is just the beginning of how Pinterest will come to support retailers and revolutionize the e-commerce business.