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August 04, 2016

Pinterest pins down market for CPG ads

Visual search engine Pinterest holds its strengths in its visual layout and natural link to retailers. It works as an online hub for images collected from the rest of the internet: images of recipes consumers want to try, places they want to go or ways they’d like to decorate their homes. Recipes, consumer packaged goods and decoration inspiration tend to be the most popular and successful pins, providing retailers a natural link to advertising.

With 100 million monthly users, it’s clear Pinterest found a very interested audience. According to Mary Meeker’s report on internet trends for 2016, 55 percent of users use Pinterest to find or shop for products. In the same category, Facebook and Instagram came in second, both at 12 percent each for shopping usage. Pinterest’s main usage, at 60 percent, was reported as viewing photos.

In 2014 Pinterest introduced Promoted Pins which are ads in the form of pins. Pinterest Promoted Pins look and feel like regular pins but with a promoted label at the bottom of each. Users interact with them the same as all pins, the difference being that brands are able to target and direct the ad to specific users. Ads are welcome on the site, but only if and when they don’t overtake the users’ experience of the site.

The platform announced last year that it would be focusing its advertising efforts on retailers and consumer packaged goods. Outside of these categories, other advertisers can still purchase ads but wouldn’t receive support.

But that doesn’t mean Pinterest is excluding other industries. The platform offers of a self-service ad service for other industries, but won’t offer hands-on support or consultation for those ads. Instead of a missed opportunity, it indicates Pinterest recognizes where its strengths lie and which products and brands can benefit from them most.

Within the platform, the capability of search is huge. Search for almost any keyword and five categories appear at the top of the screen on the results page. One of the five categories at the top of the results page is “Buyable Pins” with sponsored posts of products for purchase. Searches and results on traditional search engines differ considerably, and the difference is where Pinterest wants to capitalize.

While search engines dominate in retail and auto services, consumer packaged goods lead within Pinterest’s search function. People spend 30 percent of their time on Pinterest using the search function, so Google has no reason to be threatened. Except when it comes to CPG brands.

According to emarketer, CPG brands ranked fifth in digital ad spending share in the US in 2015, following retail, automotive, financial services and telecom.

Google’s top ten for ad spend doesn’t even include CPG brands, so when consumers go to search for household items and clothing, Pinterest has the potential to be their first touchpoint.

CPG brands have the potential to use Pinterest in its specific and intended way. Businesses have the opportunity to pay for promoted pins to increase brand awareness and engagement in order to drive in-store purchases.

A case study by Oracle found that Pinterest Promoted Pins drove five times more in-store purchases than regular pins during a year-long period from the third quarter 2014 to the third quarter 2015. The study also found that users who engage with promoted pins are 12 percent more likely to become buyers of that brand, showing that the awareness and engagement that Pinterest promotes does lead to conversions.

Relative to the national average, CPG brands are three times as likely to reach customers on Pinterest. Close to 40 percent of Pinterest users earn over $100,000 a year, which translates to their spending habits. Pinterest holds the highest average order value of any social media platforms at $50. That means that ROI is highest with a platform that yields the highest results.

CPG brands cannot ignore this data. When implemented correctly, promoted pins give businesses the opportunity to reach a targeted audience who have both the intent and potential to make a purchase

Visual search engine Pinterest holds its strengths in its visual layout and natural link to retailers. It works as an online hub for images collected from the rest of the internet: images of recipes they want to try, places they want to go or ways they’d like to decorate their homes. Recipes, consumer packaged goods and decoration inspiration tend to be the most popular and successful pins, providing retailers a natural link to advertising.

With 100 million monthly users, it’s clear Pinterest found a very interested audience. According to Mary Meeker’s report on internet trends for 2016, 55 percent of users use Pinterest to find or shop for products. In the same category, Facebook and Instagram came in second, both at 12 percent each for shopping usage. Pinterest’s main usage, at 60 percent, was reported as viewing photos.

In 2014 Pinterest introduced Promoted Pins which are ads in the form of pins. Promoted Pins look and feel like regular pins but with a promoted label at the bottom of each. Users interact with them the same as all pins, while brands are able to target certain users in order to direct the ad to specific users. Ads are welcome on the site, but only if and when they don’t overtake the users’ experience of the site.

The platform announced last year that it would be focusing its advertising efforts on retailers and consumer packaged goods. Outside of these categories, other advertisers can still purchase ads but wouldn’t receive support.

But that doesn’t mean Pinterest is excluding other industries. The platform offers of a self-service ad service for other industries, but won’t offer hands-on support or consultation for those ads. Instead of a missed opportunity, it indicates Pinterest recognizes where its strengths lie and which products and brands can benefit from them most.

Within the platform, the capability of search is huge. Search for almost any keyword and one of the five categories at the top of the results page is “Buyable Pins” with sponsored posts of products for purchase. Searches and results on traditional search engines differ considerably, and the difference is where Pinterest wants to capitalize.

While search engines dominate in retail and auto services, consumer packaged goods lead within Pinterest’s search function. People spend 30 percent of their time on Pinterest using the search function, so Google has no reason to be threatened. Except when it comes to CPG brands.

According to emarketer, CPG brands ranked fifth in digital ad spending share in the US in 2015, following retail, automotive, financial services and telecom.

Google’s top ten for ad spend doesn’t even include CPG brands, so when consumers go to search for household items and clothing, Pinterest has the potential to be their first touchpoint.

CPG brands have the potential to use Pinterest in its specific and intended way. Businesses have the opportunity to pay for promoted pins to increase brand awareness and engagement in order to drive in-store purchases.

A case study by Oracle found that Promoted Pins drove five times more in-store purchases than regular pins during a year-long period from the third quarter 2014 to the third quarter 2015. The study also found that users who engage with promoted pins are 12 percent more likely to become buyers of that brand, showing the awareness and engagement that Pinterest promotes does lead to conversions.

Relative to the national average, CPG brands are three times as likely to reach customers on Pinterest. Close to 40 percent of Pinterest users earn over $100,000 a year, which translates to their spending habits. Pinterest holds the highest average order value of any social media platforms at $50. That means that ROI is highest with a platform that yields the highest results.

Pinterest CPG promoted pins Promoted pins on Pinterest work best with CPG products

CPG brands cannot ignore this data. When implemented correctly, promoted pins give businesses the opportunity to reach a targeted audience who have both the intent and potential to make a purchase.

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