FROM THE BLOG

In Tracking Users, Pinterest Lays Groundwork for Ad Business

Pinterest is continuing to lay the groundwork for its ad business. The company announced that it will start recommending pins and boards to users based on sites they visit that have the “Pin It” button embedded.

Pinterest is continuing to lay the groundwork for its ad business. The company announced that it will start recommending pins and boards to users based on sites they visit that have the “Pin It” button embedded.

It marks the first time the network has put the massive amount of information it has at its fingertips about users’ web activity — made possible by the ubiquity of the “Pin It” button — to use. While the current implications of that data collection are limited to content relevancy, it’s not hard to see what it could mean for the company’s ad business — which still doesn’t exist — down the road.

For example, Pinterest could conceivably have a retargeting business where it sells “promoted pins” to a retailer like Gap that wants to get items that Pinterest users looked at on its website in front of them again while they’re browsing the social network. It could also use the data to build up valuable audience segments of users interested in baby clothes or wedding dresses to sell to marketers who want to advertise on Pinterest or even eventually use it to create a full-fledged ad network.

But for now, Pinterest will only use the data for recommendations. “If you’re planning a party and have gone to lots of party sites recently, we’ll try to suggest boards to make your event a hit,” said a blog post explaining the change.

Read more from the source: adage.com

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