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Pinterest Media Landscape Analysis
- 1. Media Landscape Analysis: By: N’dea Drayton & Alexandria Haynes S.I. Newhouse School of Public Communications September 13, 2018 COM600
- 2. About How it Works ● People use Pinterest to discover and save ideas. ● Every Pin lives on a “board” that clusters related ideas. Users might sort their boards by need or interest. ● Businesses also create their own Pins to highlight products, build brand awareness and increase sales. ● Businesses often sort their boards by product category, interest or seasonal topic. (business.pinterest.com, 2018) “Pinterest shows people new possibilities for their lives.” (business.pinterest.com, 2018)
- 3. Pinterest “Best Kind of Business Model”- (D’Onfro, 2015) ● Promoted Pins ○ “Cinematic pins” ○ “Cost-Per-Engagement (CPE) ○ “Cost-Per-Engagement (CPA) ● Pin Factory ● 50 billion pins on Pinterest ○ 2/3 from businesses and brands. ○ Advertisers can "promote" their pins without affecting user experience. (D’Onfro, 2015) "We're not a social network. We can deliver ads that don't feel like ads to you.” - Tim Kendall, General Manager of Monetization Former Head of Production (D’Onfro, 2015)
- 4. Has BuzzFeed Adopted the “Best” Business Model? Adopted a “Multi-Revenue Model” through “commerce, advertising, platform revenue, and show development” (Peretti, 2017). ● Expanded Commerce Business through BuzzFeed’s Tasty Cookware at Walmart (Kafka, 2018) (Peretti, 2017)
- 5. Has Conde Nast Adopted the “Best” Business Model? Conde Nast Spire Data platform with 1010Data that offers “audience and content insights, precision micro-segmentation and real-time campaign optimization” (condenast.com). Social Studio Utilizes their 160 million consumers as a ‘focus group’ to develop and polish custom content and existing assets for individual platforms. (condenast.com). https://duccnguyen.co/2013/08/24/would-you-get-a-coffee-at-vogue-cafe-take-a-drink-at-gq-bar-to-save-conde-nast-publisher /
- 6. BuzzFeed on Pinterest Conde Nast on Pinterest https://www.pinterest.com/buzzfeedtasty/ https://www.pinterest.com/condenast/?eq=condenas& etslf=5172
- 7. Is Pinterest Disrupting Buzzfeed? “Pinterest is BuzzFeed’s second largest social network referrer... In fact, more than half of BuzzFeed's traffic from Pinterest goes to posts published more than 2 months ago” - Dao Nguyen, VP of Growth and Data at Buzzfeed (business.pinterest.com, 2018) ● Collaboration is key
- 8. How Can Buzzfeed Leverage it? ● Does not use “Promoted Pins” & “Pin Factory” (D’Onfro, 2015) ● Currently uses Pinterest usage data to monitor community changes -Inform editorial and product decisions ● Should utilize Pinterest more to promote Buzzfeed extensions (i.e. Buzzfeed Tasty)
- 9. Platform Projections ● Pinterest currently has 200 million monthly active users, which has doubled its growth from 2015. ● Pinterest still lags behind Twitter’s 330 million monthly active users for 2017 ● Pinterest’s user base is strong and engaged, and this is likely to be a key factor in driving revenue growth and valuation. ● Reports suggest that it now plans to go public in 2019 ● The key to its valuation in the next two years will be its ability to grow revenues significantly by attracting advertisers through a strong value proposition. (Forbes, 2018)
- 10. References Business.Pinterest.com. (n.d.). Buzzfeed: 5 mind-blowing lessons from buzzFeed on pinterest. Retrieved from https://business.pinterest.com/en/success-stories/buzzfeed CondeNast.com. (n.d.). Conde nast: Advertising. Retrieved from http://www.condenast.com/advertising/ D’Ofrono, J. (2015). Why $11 billion pinterest thinks it has the 'best kind of business model'. Retrieved from https://www.businessinsider.com/pinterest-new-ads-2015-5 Kafka, P. (2018). BuzzFeed has a new business model, so it’s selling its own line of kitchen tools at walmart. Retrieved from https://www.recode.net/2018/3/1/17066402/buzzfeed-walmart-tasty-kitchen-gadget-tools-retail-deal Peretti, J. (2017). 9 boxes: Building out our multi-revenue model. Retrieved from https://www.buzzfeed.com/jonah/9-boxes Pinterest Business. (n.d.). Pinterest business board [Pinterest page]. Retrieved September 11, 2018, from https://www.pinterest.com/pinterestbusiness/?eq=pinterest%20bu&etslf=299352 Wilhelm, A. (2017). Buzzfeed’s evolving business model. Retrieved from https://news.crunchbase.com/news/buzzfeeds-evolving-business-model/ Statista.com. (2018). Most popular pinterest categories in the united states as of february 2017. Retrieved from https://www.statista.com/statistics/251048/most-popular-categories-browsed-on-pinterest/ Team, T. (2018). Can Pinterest Be A $30 Billion Company? Retrieved from https://www.forbes.com/sites/greatspeculations/2018/06/15/can-pinterest-be-a-30-billion-company/#6a90b4f6c3fb
Editor's Notes
- While BF has not adopted PT’s exact business model, obviously, they have recently implemented what they see as the current optimal strategy for revenue collection, which they call a “multi-revenue model.” This is basically a strategy that utilizes their partners exclusively for business purposes. The example that we’ve been discussing as a class has been Buzzfeed’s Tasty and their deal with Walmart.
- Similarly, Conde Nast has their own strategies for creating revenue that they also believe is optimal to creating custom content for their consumers. They use their own data platform for analysis and a platform for customized content for their multiple platforms.
- However, both companies utilize Pinterest as a platform and, more specifically, Buzzfeed’s Tasty is often pinned onto Pinterest food boards and things of that nature, so while the companies all implement slightly different tactics and models for making money, they all still operate within one another.
- Simply put, rather than being direct competition, BF and PT collaborate as their users seem to use both platforms in unison. Disruption would be the wrong term. Maintaining and improving the flow between each platform would work in their best interests.
- The representatives we have spoken with make it pretty clear that Buzzfeed is trying to make their own way in terms of creating revenue and advertisements, but they still use Pinterest’s platform as a tool for creating traffic to their website and vice-versa. As a result wont be leveraging the business model, however, they utilize platform and business model to promote sections of their own platform such as Tasty, which has its own account.