When people go to Pinterest, they’re looking to make something happen; a fresh look for summer, a weeknight pasta dish or a party-ready outdoor space. And because they’re in such a specific mindset, they’re open to hearing from brands.
In fact, new research from Neustar shows just how valuable that mindset is to brands. In the study, participating retail brands saw a 2x higher return on ad spend from Pinterest than from social media and a 1.3x higher return than from traditional search.
The measurement and market intelligence firm’s study looked at digital channel performance for five US retail brands, tracked to their online and in-store sales. They ran a multi-touch attribution study to measure performance for paid search, paid social and display advertising.
Neustar found that because people go to Pinterest to seek inspiration early in their shopping journey, Pinterest has a lasting impact on their final purchase decision.
This process isn’t always immediate, though. Sometimes, people start looking at Pinterest for an idea and make their final purchase days later. Within Neustar’s study, people often took a week or longer to make a purchase after seeing a brand’s ads on Pinterest.
This has big implications for measuring Pinterest performance. When Neustar ran a last-click model, the model underreported revenue from Pinterest ads by 48%. The takeaway? Because people use Pinterest so early in their shopping journey, marketers need to adjust their attribution windows to give people time to make a purchase before declaring a return on ad spend.
Neustar’s research also showed that Pinterest was the most efficient digital channel for retail brands in their study. It generated more sales, at less cost. While Pinterest made up only 11% of media spend in the study between the five brands, it generated 18% of their incremental sales and revenue.4 That made Pinterest 2.3x more efficient than social platforms, 1.5x more efficient than paid search and 1.1x more efficient than display.
These results are possible because people actively use Pinterest during their purchase journey. Throughout 2019, we’ve launched a series of features that make it easier for people to shop for the things they love on Pinterest.
Today, Pinterest is launching the next round of updates for Pinners, like browseable catalogs alongside Pins and personalized shopping ideas in home feeds. These updates will make it easier for people to find your products while they’re discovering new ideas on Pinterest.
Pinterest is also helping businesses quickly and easily scale their advertising efforts. With Pinterest Catalogs, you can now turn all your products into Pins with a single upload, then run shopping ads to get even more reach.