Join us Sept. 14-16 in Miami to connect with top publishing leaders
Pinterest is a contender to be the new big thing in social platforms. One thing it’s missing compared to the big one like Facebook, Twitter and even Tumblr: a business model.
That might be changing, although slowly. Pinterest is taking baby steps toward being more business friendly with the introduction of tools for businesses. What’s clear is Pinterest is following the playbook of the big social platforms: get brands hooked up the free stuff, then sell them more exposure. So it’s starting with a business accounts that verify businesses and some helpful tools and advice on making the most of the digital scrapbooking platform.
What’s not yet clear is how this will translate into ad products. The bet appears to be one familiar to brands using Facebook and Twitter: offer exposure of their brand content for a fee.
Pinterest recently raised $100 million at a $1.5 billion valuation. Pinterest has an incredible lock on the coveted female demo, credible analytics with regards to time-on-site measurement, and a great user-interface, per Christian Borges, vp of marketing at MRY.
“Honest answer: [Pinterest] probably [can] not [survive without a business model,] but nobody knows,” said Borges. “There’s been plenty of industry talk and speculation around how exactly Pinterest can monetize without alienating consumers, none of which involves traditional display ads, but rather more creative options, i.e. branded, promoted or highlighted pins.”
That’s the direction most social platforms are going. The vogue of “native advertising” means trying to get the ads to act like regular content. That means getting more brands creating on Pinterest in the first place. Then the trick is coming up with a way to introduce that content to Pinterest users in a way that doesn’t turn them off. There’s been rumors of sponsored pins, but nothing concrete. Pinterest is already a great place to find recipes or design recommendations and content creators are receiving substantial referrals through the platform. A potential route for Pinterest could be promoted content to help users find relevant content, a.k.a pins.
The fact of the matter is, according to Borges, Pinterest has been quietly experimenting with monetization though links to affiliate programs, whereby Pinterest adds their own affiliate tracking code and if someone clicks through that picture from Pinterest and makes a purchase, Pinterest gets paid a percentage, Borges revealed. But this is not a long-term solution. Therefore, they must have something in the works.
“Just because Pinterest hasn’t unveiled their monetization model, doesn’t mean they don’t have one,” said Adam Kmiec, social media chief at Campbell Soup. “There was a time when we, as an industry, believed Twitter and Foursquare lacked monetization models. Given the mountain of user interest and purchase intent data, Pinterest is sitting on, they’re better positioned to thrive than many other social platforms.”
More in Media
USA Fencing relies on creators to attract new fans ahead of the 2028 Olympics
Creators can bring new fans to niche sports in droves, and USA Fencing wants to tap into their cultural power.
An anatomy of the creator brand trip’s midlife crisis
The brand trip as we know it may be dead, but a newer, more genuine and engaging format is rising from its ashes.
European publishers are getting hit harder by AI bot scraping, report finds
European publishers face more AI bot scraping, fewer referrals and more ignored robots.txt rules than North American sites, report finds.