In a business venture, profit or income is very important. In the case of online business, paid advertisement is its blood and life. Without it, operations will not be smooth or worse, it can permanently stop the business. Having this in mind, Pinterest finally gets paid advertisements.
Pinterest is valued at $3.8 billion with more than forty million active users around the world by the end of this year. According to a study made by eMarketer, there were thirty four million active members of Pinterest last year. Thirty million of the active members (last year) were women.
How would paid advertisements affect the performance of the company? Here’s an overview:
- More patronage over time: Women have extraordinary retention rate unlike men. Since it was found out that women comprise most of the active users in Pinterest, the patronage will not be an issue. As long as the platform is there, women will continue to use and support it.
- More advertisers over time: The highest concentration of advertisements focus on fashion. You will see that there are mix of brands in Pinterest like Old Navy, Gap, Lululemon Athletica, Banana Republic and many more. After fashion comes food and travel. If the advertisers prove that Pinterest is a good platform, it will draw others.
Before full throttle, Pinterest has this small group of advertisers (like the ones mentioned above) to test the waters. Pinterest is trying to collect feedbacks before opening it to more brands or businesses. If you have something on your mind or if you want to share your feedbacks, you can go to Pinterest’s Google Doc.