Pinterest Wants To Sell Ads For $2 Million
<img style="float:right;" src="http://static6.businessinsider.com/image/532b2a4f6da811a13a599879-480-/shoe-pinterest-5.jpg" border="0" alt="Shoe pinterest" width="480" />
Pinterest's first advertising product isn't available just yet<span style="line-height: 1.5em;">, but Ad Age reports the social network is asking for commitments of between $1 million and $2 million from marketers interested in buying ads on the platform.</span>
Not only that, Pinterest is planning to charge between $30 and $40 for 1,000 views (CPM) of its promoted pins, which would push a given product into users' Pinterest feeds.
T<span style="line-height: 1.5em;">hat's even higher than the ~$20 CPM </span>top publishers like CNN and CBS reportedly charge<span style="line-height: 1.5em;"> for an online video commercial, a relatively lucrative digital ad format.</span>
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:
<img src="http://static2.businessinsider.com/image/52558a68ecad04586ce7e554-800-533/promoted-pin.jpg" border="0" alt="promoted pin" />
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 $0.78 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<span> </span>.
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 $3.8 billion as recently as October.
<b>See Also:</b>
<ul><li>Facebook Tripled Its Share Of The Mobile Ad Market Last Year, But Google Still Dominates [THE BRIEF]</li><li>Terry Crews Made Another Totally Bizarre And Absolutely Hilarious Ad For Old Spice [THE BRIEF]</li><li>The 8 Digital Trends That Will Change The Future Of Advertising</li></ul>
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