August 19, 2016
Pinterest just began selling video advertising, with the first ads from Kate Spade and bareMinerals in the coming weeks. The GIF-like ads will be silent until the user clicks the images, or pins, of the featured products next to the videos, which could allow the user to buy the product within the Pinterest website. By adding video ads, Pinterest joins the ranks of Facebook, Twitter, Snapchat and large publishers similarly seeking the premium revenues of the kind of marketing once reserved for TV.
The New York Times reports that Pinterest, which draws more than 100 million visitors a month, “allows people to save links to images and videos, known as pins, to aesthetically pleasing virtual bulletin boards, and to follow the boards created by others.” With 75 percent of its content coming from businesses, Pinterest is a “popular destination for consumers looking to buy goods,” especially in home improvement and cooking.
The company, which saw a 60 percent increase in the number of videos saved by users last year, says that Etsy got the greatest number of links from its Save button last year, and YouTube has since grown in numbers.
The company “has underinvested until now in video as a platform,” suggests Pinterest head of global sales Jon Kaplan, who said the company will “most likely benefit from some brands that are turning away from TV.”
“We wanted to make sure it was customized and specific to the way people use our platform,” he said. “What you’re going to see going forward is a very big investment in video.” Makeup brand bareMinerals is one such millennial-focused company that is spending less on TV to begin its campaign on Pinterest, promoting a new foundation via a video tutorial.
BareMinerals executive Rebecca Boston notes that, “we are investing more of a percentage of our marketing budget in digital and mobile because that’s where the millennial is spending her time. She’s not watching as much TV as she used to.”
Kaplan adds that, “talking to advertisers, there’s an insatiable demand for video inventory.” “The viewership of TV is something that’s of concern to them,” he said. “That viewership is going down, ratings are going down, and they need to find places to accomplish their business objectives where people are spending their actual time.”