A handful of big-brand beta partners have been testing this product for months
Brands like ABC Family, Target, Old Navy, and many others have already been selected to work with Pinterest on beta testing the Promoted Pins ad product since last fall. Initially, these swaths of ads were sold on a CPM basis. The goal for most of these companies was to not only generate more brand awareness on the platform, but to create brand love and affection. After all, the visually based world that Pinterest owns on social media is best at eliciting emotions, not information. It's hard to convey facts and figures in an image unless you turn it into an infographic. Promoted Pins will have a slightly different goal than conventional ads, but the results will be very impactful for consumers.
Pinterest is also focusing on small to medium businesses, not just big CPM advertisers
Pinterest is not just thinking about the big boys as it continues to develop this product. The company sees tremendous value and opportunity from small to medium-sized businesses participating in the Promoted Pins game. The company wants to open this up as broadly as possible. How are they making this work? While initial beta testing partners are paying on a CPM basis, the goal for Promoted Pins is ultimately to be paid on a CPC level, similar to Google's sponsored search results. A CPC strategy is a good indicator that Pinterest wants to open this up beyond just brands with big CPM money to shovel out.
Pinterest is adamant about quality control and reasonable proportion
Every Promoted Pin is reviewed by Pinterest to make sure that it meets the company's standards. If users were worried about a loss of quality on the platform, this should put them at ease. The social media giant is taking great strides to make sure the Promoted Pins landscape does not turn into the Wild Wild West of pop-ups and banner advertising. This product will have strict guidelines for marketers. There will also be great thought put into how many Promoted Pins are put out in relation to actual user content.
Pinterest waited until it perfected the pinning experience before exploring this ad revenue stream
You would think in a world of native and content marketing that Pinterest would have explored this revenue stream much sooner. So why didn't it? Pinterest wanted to spend the first few years of its inception perfecting the user experience with exploration and pinning before letting advertisers get in on the action. Image-based ads see incredibly high traffic, and if Promoted Pins are executed correctly, marketers could see impressive ROI. The company knew that it needed to wait until its audience was ready.
Meredith Rodriguez, west coast lead for Pinterest, speaks to iMedia about this new product and the exciting new things marketers can expect.
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Article written by senior media producer David Zaleski.
Video edited by associate media producer Brian Waters.
"WIELICZKA, POLAND - 25 JUNE 2014. Pinterest logo on computer screen." image via Shutterstock.