Pinterest’s first advertising product isn’t available just yet, but Ad Age reports the social network is asking for commitments of between $US1 million and $US2 million from marketers interested in buying ads on the platform.
Not only that, Pinterest is planning to charge between $US30 and $US40 for 1,000 views (CPM) of its promoted pins, which would push a given product into users’ Pinterest feeds.
That’s even higher than the ~$20 CPM top publishers like CNN and CBS reportedly charge for an online video commercial, a relatively lucrative digital ad format.
Pinterest announced it was planning to introduce promoted pins six months ago, and has since been testing the product for a select group of marketers free of charge. Here’s what Pinterest said the ads would look like:
Since so many people use Pinterest to bookmark — or “pin” — products they would like to purchase in the future, marketers see it as having natural e-commerce potential. Already, the company allows brands to include shopping information in their pins to let people know how much the products in the pin cost, and where they can go to buy them.
According to a study conducted in November, every pin posted to someone’s digital bulletin board is worth an average of $US0.78 to the brand whose merchandise is featured in it. Pinterest has more than 70 million users, according to a study that came out last June .
Like Google’s search ads, a promoted Pinterest search ad would allow a retail brand to show its product to someone very likely to be in the market to make a purchase. For instance, if I search for “sneakers” on Pinterest, there’s a pretty good chance I’d be interested in looking at a promoted pin displaying a new pair of Nikes. I might even click a link to the website of a retailer selling them.
That’s why Pinterest is planning to charge so much money for its ads, and why the platform is poised to become an advertising juggernaut in short order. It’s no wonder the company was valued at $US3.8 billion as recently as October.
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