Pinterest is getting into the paid advertising space, joining its social media peers Facebook, Instagram and Twitter.
This story first appeared in the March 25, 2014 issue of WWD. Subscribe Today.
The site is expected to launch promoted pins during the second quarter of this year — they will look much like the current pins, except they will have a notification along the bottom that says “promoted pins.” It is further proof that digital ads across the social mediums play an increasingly integral role in online marketing.
Brands like TRESemmé and Four Seasons have tested promoted pins on the four-year-old Pinterest so far. As far as rates go, advertisers have the option of paying via cost-per-thousand impressions or cost per click.
According to digital analyst firm eMarketer, nearly 35 million users accessed the site on a monthly basis in 2013. This number is expected to increase 12 percent this year, reaching 38.8 million. Advertising on social networks overall ballooned 46.2 percent in 2013 to $4.5 billion, comprising over 10 percent of total digital ad spending in the U.S.
Twitter rolled out retargeting ad product late last with a tailored audience program, and Facebook launched Premium Video Ads last week. After three months of testing its 15-second video ads, Facebook said it will roll out the feature slowly. Instagram introduced ads late last year as well with Michael Kors as a launch partner.
Facebook leads social media advertising in terms of revenue. The platform accounted for the majority, or 72.4 percent, of advertising dollars accrued on social networks last year.