Social media naysayers love saying that the internet is nothing but photos of people’s outfits, people’s dinners and cat pictures. It wouldn’t surprise these detractors to be largely correct in their assessment, but it certainly did surprise many when the ultimate photo album of the internet, Pinterest, was the recipient of $3.9 billion in funding dollars recently. In addition to that, Pinterest has scored an unpaid deal to be preinstalled on Android phones in Latin America and Europe (Telefónica). What makes a site that has heretofore been seen as frivolous so valuable?
For one thing, Pinterest has 70 Million users as of right now, 80% of which are women. With women driving more purchases than ever before, reaching them has become important to every business. 80% of Pinterest items “pinned” are re-pins. That means that 80% of Pinterest activity is made up of people sharing what they find and what they covet with other people. The more intriguing aspect of this is that a user’s Pinterest circle of connections is not necessarily made up of only people that they know. With group boards and public sharing, entire circles of like-minded connections have sprung up on this very visual network. With a 66.52% rate of growth in web traffic referrals from September 2012 to September 2013, brands want to be part of the Pinterest storm more than ever before.
Like other social networks, Pinterest has been experimenting with its business model. It recently discontinued “Pin It To Win It” contests on Pinterest, and added Related Pins, paid Promoted Pins and Place Pins. Pinterest has also been experimenting with web analytics and has been on top of the anti-onlne bullying and anti-spam movements by giving users a way to report content violations.
What does all of this mean for a brand that has the kind of visual, lifestyle product that does well on Pinterest? To answer that question, let’s look at some sales and conversion data about Pinterest in the past year. First, the average time someone spends on Pinterest is 14.2 minutes. That’s incredibly “sticky”. Pinterest users spend an average of $140 – $180 on orders generated by clicks on the site. That is more than Facebook and Twitter generated average orders combined. 18% of Pinterest users have an income over $75,000. The most followed brand on Pinterest as of October 2013, Nordstrom, has 4.4 million followers, while the most followed Pinner, Joy Cho, clocks in at 13+ million.
What brands should take away from these statistics is that any brand with a visual, shareable product, a lifestyle product, or an iconic brand face will do quite well on this network. Pinterest gets great traction, repeat visits and enthusiasm from users in a way other sites don’t. It is my theory that they do this by being the network of possibility, looking to the future. Pinterest isn’t about what’s right now – it’s about what users aspire to. Brands that get that, and that present content that supports that and leads back to sales pages, will do well.