Pinterest Is The Best Example Of Social Media's Real Role In The 'Purchase Funnel'

Pinterest is gearing up for a big rest of the year.

The social network is expected to go public with a huge IPO in the next few months. In advance of that move, Pinterest will also soon roll out high-priced advertising from premium brands.

The social network’s value to investors and advertisers is especially high because of the important role the site plays in “social commerce.”

Pinterest is a source of inspiration and discovery. To that end, Pinterest drives a huge share of referrals to other sites, far outpacing the site’s comparative reach.

In a recent report from BI Intelligence, we analysed the data and spoke to leaders in the social commerce space to understand how social media can play an important role at the different stages of the retail and e-commerce “purchase funnel,” the long process that leads to a retail sale. At the bottom of this post, you can see a graphic from BI Intelligence showing what the purchase funnel really looks like.

Some of the latest trends include building social networks around e-commerce platforms, partnering with brands, and otherwise transforming social commerce’s strengths for Pinterest-style digital window-shopping. The report looks at the most important way retailers are leveraging social engagement to drive purchases.

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Here’s how social commerce companies are driving sales:

In full, the report:

To access the report and BI Intelligence’s ongoing Social Media and E-commerce coverage — including charts, data, and analysis — sign up for a free trial.

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