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Pinterest Advertising Will Be Hugely Popular With Retailers, This Chart Shows Why

Cooper Smith   

Pinterest Advertising Will Be Hugely Popular With Retailers, This Chart Shows Why
Tech2 min read

The knock on social media was that it would never drive a lot of paying customers to retail sites, because people are on social networks to connect with friends, not to shop.

But Pinterest is proving to be an exception to that rule. The company's announcement yesterday that it would begin experimenting with "Promoted Pins" will cause major retailers to rejoice. Here's why:

At BI Intelligence, Business Insider's paid subscription service, we recently analyzed over 25 datasets culled from a variety of sources to probe the viability of social media as a commerce and retail-driver. We published our insights in two recent reports, "How Social Commerce Is Going After The Entire Purchase Funnel," and "The New Art Of Social Commerce: How Brands And Retailers Are Converting Tweets, Pins, And Likes Into Sales."

Subscribers also gain access to over 100 in-depth reports and hundreds of charts and datasets on mobile, social, and their impact across industries, including retail.

BII social average order value

BI Intelligence

While e-mail, search and other sources of customers, or "referrals," are still more effective as referral sources, social media is gaining. Customers referred by social media are making larger and larger purchases, $87 on average in the second quarter, or $11 more than a year before.

Pinterest's move toward ads also comes days after Instagram's CEO suggested that the photo-sharing service might also position itself as a social commerce platform for brands and retailers.

To access BI Intelligence's full report, The New Art Of Social Commerce: How Brands And Retailers Are Converting Tweets, Pins, And Likes Into Sales, sign up for a free trial subscription here. Subscribers also gain access to over 100 in-depth reports on social and mobile, and hundreds of charts and datasets.

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