History has shown that every established social media network tries to dive into monetization through serving ads to its clients. Up until now, we had Facebook Ads, promoted tweets, LinkedIn Ads among other. As it seems, it is now Pinterest’s turn to try to do begin the journey of promoted pins.
The sole problem for Pinterest is that they already have raised 564$ million dollars from investors, but they have no revenue yet (Although some may consider that having about half a billion dollars in your hands is not actually the definition of a problem).
Pinterest had already began testing promoted pins on the web platform and its mobile apps about six months ago, with a specific list of companies that has not been revealed. This time, as we read in AdAge, they try once again to promote their new advertising platform and, in order to do so, they ask for a heavy financial invest from prospective advertisers. More specifically, they are looking for deposits from 1$ to 2$ million that will lead up to a price estimation of CPM (Cost per Thousand Impressions) of between 30$ and 40$.
Eventually, Pinterest tries to demonstrate itself as a premium advertising platform, just like Instagram tried a few months ago. After all, Pinterest is a female-friendly network whose demographics include many high income visitors that constantly seek for new products from their beloved brands. So, in that sense, it is possible that some well-known cosmetics firm would pay the aforementioned amount of money to approach Pinterest’s power users.
What do you think about that? Do you believe that Pinterest will find businesses to cooperate with or is it simply overcharging for its – yet to be clarified – advertising services?