Performance based advertising has long been thought to be the specialty of the world’s largest search engine company, Google. But image-sharing social media platform Pinterest has decided to take them on (kind of). Businesses can now bid on cost-per-impression ads through an auction much the same way they would through Google’s Display Network. Previously, these companies could buy ads on a cost-per-engagement or cost-per-click auction, but cost-per-impression ads were held at a fixed price at Pinterest.
Currently, the program is available in the US, UK, and through members of its marketing developers program. Small to medium seized businesses are able to serve themselves, however large businesses must work with a Pinterest rep or an ad-tech company to organize their Pinterest advertising strategy. Pinterest has high hopes for their new program, proudly proclaiming that their per impression advertising increased in-stores sales 5x for consumer packaged goods companies.
Pinterest has been positioning itself to compete with the internet’s largest companies such as Google and Amazon for some time now. Their new cost-per-impression auction system is a strike against Google and in June, the company launched a shopping cart and visual search tool based on Amazon’s.
While trials for the services have been initially fruitful for everyone involved, it’ll only be a matter of time before Pinterest’s competitors pin their answer to its board.
While trials for the services have been initially fruitful, it has yet to be seen whether or not Pinterest will become the next big thing in visual marketing. However, Pinterest is putting their chips on the table by bringing in Snapchat executive Gunnard Johnson to head its measurement science division and former Google veteran, John Kaplan, to lead its global sales department.
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