After more than four years of operation, Pinterest has finally decided it’s time to make some money.
Pinterest announced today that, while still in testing phase, brands are now paying for Promoted Pins. The dozen or so brands included in the paid test include ABC Family, Banana Republic, Expedia.com, Kraft, Old Navy and Target.
Promoted Pins appear in category and search results on Pinterest.com and its mobile apps. The sponsored pins are native-style ads that look similar to organic pins, with the exception of a brand name, logo and a “Promoted Pin” label.
While pricing hasn’t been divulged, in March, AdAge reported that Pinterest was pitching commitments of $1 and $2 million, and aiming for CPMs between $30 and $40.
Pinterest first paid test, in the U.S. only, is with a small group of brands from different industries, including:
- ABC Family
- Banana Republic
- General Mills
- lululemon athletica
- Nestle – Purina, Dreyer’s/Edy’s Ice Cream, Nespresso
- Old Navy
- Walt Disney Parks and Resorts
With a substantial audience in place, Pinterest is asking for major commitments from prospective advertisers: between $1 million and $2 million per campaign, according to AdAge. That puts Pinterest’s CPMs (cost per thousand views) at between $30 to $40 — an aggressive price point compared to standard web advertising, or even other social ads. Pinterest declined to comment on its pricing.
Social advertising is becoming an increasingly large part of the overall amount brands spend on advertising each year, climbing 46.2% last year to reach $4.56 billion total, according to eMarketer. Facebook commands a massive 72.4% chunk of that sum, while Twitter has roughly a 9.2% share.