The Monetisation of Pinterest
The move paves the way for Pinterest to move towards a monetised ad model ala Twitter & Facebook.
It’s a timely announcement from the Social Media channel that describes itself as a visual discovery tool, as it continues to grow in stature.
Pinterest has become a highly compelling channel for advertisers:
– Pinterest now accounts for c40% of e-commerce traffic from social networking sites
– The average Pinterest user (Female and Socially engaged) has a household income of more than £60K
– The average e-commerce order placed by a Pinterest user is £110, compared to £50 for Facebook
-Pinterest is global – It’s now available in 31 Countries, including (for now) China
Pinterest’s worth is put at a reputed $6 Billion, despite never having generated ad revenue to date, which is remarkable.
Pinterest Promoted Pins
We can expect to see the launch of Pinterest Promoted Pins later this year, click here to register for early notification of the UK launch:-
http://business.pinterest.com/en/promoted-pins
Pinterest is reportedly asking brands in the US for commitments of between $1-2 million, with CPM rates between $30-40 for a promoted pin. A Salesforce study last year estimated that Facebook’s most expensive ad was selling for an average CPM of $6.27. So, putting this into context, Pinterest values its users at 5 times the amount of Facebook’s.
Malorie Lucich, Pinterest’s spokesperson, stated “early feedback has been positive” from advertisers. Part of why advertisers are excited about Pinterest, Lucich stated, is that Pinterest users don’t seem to view promoted pins any differently than regular, a post of a picture of a jacket sponsored by Banana Republic will generate as many clicks as a friend posting a picture of a jacket.
“Users don’t really look at them as ads,” Lucich stated.
It will be interesting to see how Promoted Pins takes off in the UK, but initial signs are positive, this could well be a hugely effective channel for brands and retailers to reach lucrative new customers.
It was a pleasure to attend Premier Li’s speech this week in London, against the prehistoric backdrop of the National History Museum.
The UK-China Business dinner was a fascinating event, reaffirming the strengthening relationship between the UK and China. The event was used as a platform to announce China’s commitment to invest £14 Billion in infrastructural developments and energy in the UK.
The UK is now the most popular destination for Chinese investment in Europe, with more investment having been made in the last 18 months in the UK, than in the last 30 years in total.
The event also coincided with news that the Bank of England has appointed The China Construction Bank as the London renminbi (RMB) clearing house. The appointment is part of a plan to make London a hub for Chinese currency dealing.
Chancellor George Osborne said the bank would be “hugely important in underpinning the future growth of London’s RMB business”.
In addition to the news on currency, it was also announced this week that Britain is overhauling its visa system to make it easier for Chinese tourists and businesses to visit the UK.
China is the number 1 luxury spender worldwide, making up 29% of the total global luxury spend in 2013, a December report by consultancy firm Bain & Company states.
Spending by Chinese tourists in Britain is expected to surge over the 1 billion pound mark by 2017, an increase of 84% from 2013 levels.
All bodes well for building on this relationship going forward.
I had the pleasure of visiting Google HQ in Dublin this week to meet with our account management team, on Regroup business.
Every time I meet with Google, they flag up the huge potential reach offered by YouTube for advertisers looking to raise brand awareness to reach a mas market.
The potential offered by YouTube is undoubtedly massive. According to Nielsen, YouTube reaches more US adults aged between 18-34 than any other cable network.
YouTube is the Western World’s 2nd biggest Search Engine (albeit for Video). Like with many Social Media channels, that road is littered with misfiring campaigns, by Brands, sometimes using the media for the sake of being involved.
However there are some incredible success stories. I think it is heartening to see exciting, young brands embracing Social, executing campaigns on comparatively low budgets, but absolutely hitting the sweet spot in term of messaging, media usage, and playing to the viral potential.
A great example, and one often used by Google themselves (YouTube’s owners) is these guys – GoPro, who make portable cameras tailor made for outdoor sports/ extreme sports and in fact anything else outdoor. Their YouTube channel has become a serious concern with inexpensively made, but professional video clips often exceeding a million views.
Of course their products are tailor made for the making of great viral material, and they are capitalising on this. Check out their Channel – https://www.youtube.com/user/GoProCamera
And have a look at this clip below that reached over 3 million views – amazing what can be achieved with a few cameras and a skier.
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