Pinterest Needs to Define Ad Metrics for Its Own Success (Not Cost Per Click)
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Pinterest is on the fast track to success, but it faces a critical juncture as it prepares to roll out its first ad platform. The visual-based social network has amassed 40 million users in the U.S. alone, has raised $564 million and is valued at $3.8 billion, according to investors. As Pinterest announces its advertising plans, dozens of brands are jockeying to be among the first to use its premium ad offering.
As the company begins to lock down deals with brands and agencies, two things are clear. First, Pinterest must stay true to its audience by ensuring that these ads do not detract from the overall experience. Luckily, Pinterest has publicly expressed its desire to make “artful Web ads that people actually love,” which is a great first step. And, judging by the way it has carefully recruited advertising partners, it’s evident that its core focus is in preserving the integrity of the platform.
The second, and more difficult, challenge for the startup is to define its own metrics for success by communicating the effectiveness of ads on its platform in a way that captures their unique value as a brand-building platform. Pinterest must do so quickly, before the marketplace determines this language for them and chooses metrics that don’t play to their strengths.
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