Analyst to Pinterest: Go ahead with the ads, but be careful
Promoted content that is tasteful is a good idea for Pinterest, one analyst said
IDG News Service - Pinterest already makes nice with outside businesses to better connect them with its site, but the social network is now thinking about consummating that relationship with promotional content.
And that's okay, as long as the content is integrated tastefully and does not stick out like a sore thumb as banner ads might, one analyst said.
That's the stated idea behind a new experimental program Pinterest described Thursday that would promote certain content on its site from a select group of businesses.
The amount of funding Pinterest has generated from outside investors is difficult to pin down. But the program was characterized as an effort to help make sure that the site "will be here to stay," CEO Ben Silbermann said in a blog post.
And if the site carries out its plan the way it says it will, users will stay too, said Rebecca Lieb, an industry analyst with the Altimeter Group.
Pinterest is a site that lets users post different types of visual content including pictures of retail items, recipes, ideas for event planning, or inspiring photographs. It's not so much a site for creating content, like Tumblr or YouTube, as it is for organizing it.
The site already offers a tool to help users easily incorporate content from outside businesses into their feeds -- the "Pin It" button. Pinterest lets businesses place the button on their website or mobile app, and when a Pinterest user clicks on it, they can post content such as photographs directly from that site to their Pinterest feed.
The site also offers analytics tools to help businesses see what type of content is getting the most play on Pinterest.
The experimental program Pinterest described on Thursday, which it is calling "promoted pins," is an extension of those efforts. Pinterest says these pins will only appear if they are relevant to the user, and will be marked in some way to let users know that they were paid for. As part of the experiment, the first promoted pins will be free to participating businesses, the company said. Pinterest did not identify the experiment's participants.
For example, Pinterest said if a user does a search on the site for "halloween," the person might see a pin for a Darth Vader outfit from a costume shop.
Promoting that type of content is a good idea, Altimeter's Lieb said, as long as it doesn't cheapen the user experience or distract people. Plus, it's due time for Pinterest to start doing more with advertising to demonstrate value to its investors, she said.
"Pinterest is not a charity, it's a business," Lieb said, and venture capitalists want their pay day. "They have to monetize their site, one way or another."
- Capabilities You Need in an IP Address Management Solution A mismanaged IP space can cripple an otherwise healthy network. Take a moment to understand what you need in an enterprise-ready IPAM solution.
- IPv6 Fundamentals IPv6 is needed to sustain the growth of the Internet. The transition from IPv4 will require planning and likely some degree of support...
- 3G/4G Digital Signage Guide Today, the widespread availability of 3G and 4G cellular or wireless broadband networks enables digital signage to be deployed virtually anywhere.
- Enterprises in Motion: In-Vehicle Networks In a world where traditional tethers to the central office have all but vanished, enterprises that operate vehicle fleets require constant and dependable...
- Cloud BI in Action: Recorded Webinar of Customer, Kony, Inc. See how Kony, Inc., a leading enterprise mobility company, is using TIBCO Jaspersoft for Amazon Web Services and Redshift to achieve embedded analytics...
- Cloud BI Overview: Jaspersoft for AWS Check out this overview of Jaspersoft for AWS, to easily and affordably build business intelligence solutions as well as embed visualizations and analytics... All Internet White Papers | Webcasts
Our new bimonthly Internet of Things newsletter helps you keep pace with the rapidly evolving technologies, trends and developments related to the IoT. Subscribe now and stay up to date!