With over 100 million users, Pinterest has grown into one of the more popular social channels out there, and it’s becoming a huge draw for marketers, especially since it launched a new ad program and a Discovery app system to draw viewers to the right areas. That program is working, as ad spending has picked up dramatically over the course of the year.
A recent report shed light the increasing interest surrounding Pinterest, a platform whose ad spend has quadrupled since January, growing to nearly eight times the spending rate. That’s good news for the site, which is bound to introduce more buyable pins as the holiday season comes closer.
Aaron Goldman, chief marketing officer for 4C Insights, is quoted as saying “Pinterest is really blowing up for brands. It’s the perfect social discovery engine. You’ve got consumers in buy-mode actively seeking inspiration with built-in sharing and network effects. Best of all, it’s still early days for Pinterest ads so there’s not a ton of competition and inventory is quite a bargain. Although I suspect that’ll change once everyone sees our stats and realizes they need to get in on the action.”
4C also provided the chart below to show just how much growth has improved over the last few months, starting out slow, but then seeing a major jump in June before jumping to its highest point in September, with 7.7 times the advertiser spending rate.
4C also noted that the platform is able to produce solid results from these ads, as clicks on Pinterest are up by nearly six and a half times since the start of the year, while re-pins of ads have increased five times. In addition, ad impressions have also grown by nearly 3.3 times over the course of the year, and click-through rate of ads has reached double value.
Some specific retailers have benefitted more than others. According to the report, online retailer Adore Me was able to boost Pinterest revenue by an estimated 4,000 percent, and reached new consumers. In addition, customers acquired on the site manage to spend more than 20 percent over time, compared to items purchased elsewhere.
Despite these positive results, the cost per click rate h as not risen by much, with an increase of 1.2 times this year, showing that Pinterest has not yet become a crowded ad platform. However, there’s still room for advertisers to grow with the site.
Part of this success is due to the new Discovery Engine, which enables certain content to be found via visual search. With it comes click-through rates and engagement, where advertisers truly see the benefits at hand. 4C believes that it’s more than enough reason for companies to jump on board.
“If you are still on the fence about Pinterest, jump in now before the true market saturation begins as click costs rise,” says the report. “You can take advantage of the opportunity to get clicks at a bargain before your competitors arrive en masse.”
This is good news for Pinterest, who has been ramping up their ‘discovery engine’ to become the destination for visual searches online. The U.S. search advertising market is worth $26.53 billion this year and is predicted to reach $29.24 billion in 2016. If they are able to crack this, Pinterest will be in an even better position to provide brands with search intent and interests.
