Pinterest as a Marketing Tool


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Pinterest as a Marketing Tool

  1. 1. Pinterest as a Marketing ToolWhitepaperMay 2012
  2. 2. DisclaimerTo the viewers of this reportThis report is prepared in accordance with our findings on Pinterest. This report has beenprepared on the basis of desktop research conducted in May 2012. Because it’s a sample reportcreated for business development purposes, our report may not be suited for any purpose otherthan to assist you in your evaluation of our research capabilities. Additionally, our report reflectsevents and circumstances as they currently exist.We have not independently verified the information gathered or contained in this report and,accordingly, express no opinion or make any representations concerning its accuracy orcompleteness.We shall be pleased to receive your observations on our report.Our report is for your information only and should not be quoted, referred to or transmitted toanother party, in whole or in part, without our prior written consent. 2
  3. 3. Pinterest, a pinboard-style social photo sharing website launchedin 2010 is fast gaining traction among social media audience is stepping up as a valuable tool for businesses is built by a small team inPinterest is …. Palo Alto, California is well funded by group of Founded by Paul successful entrepreneurs Number of Total Unique Visitors on A virtual pinboard where and investors Sciarra, Ben Silbermann and Pinterest people share and collect the Evan Sharp things they love Annual Household Income (USD) Jan-12 11,716 Was launched in 2010 Age Dec-11 7,516 0-17 5% 0-24,999 8% Nov-11 4,855 18-24 17% Oct-11 3,295 25,000-49,999 35% Sep-11 2,073 20% 80% 25-34 30% 50,000-74,999 34% Aug-11 1,270 35-44 25% Jul-11 1,031 75,000-99,999 14% Jun-11 608 45-54 16% May-11 418 100,000-149,999 6% Thousands 55-64 5% 150,000 or more 3% 65 or more 2% Pinterest is growing at an astounding rate As of Jan 2012, Women Majority of Pinterest users As per ComScore total Most of Pinterest users are account for most of Pinterest live on household income number of unique visitors on between 25-44 years of age users between USD 25-75k Pinterest was ~12 mn 3Source: Internet Marketing Inc.
  4. 4. Marketing potential of Pinterest lies in its fast adoption coupledwith high referral and engagement rates Most Popular pinboard categories Adoption rate after 2 years of launch Referral Traffic (Jan 2012) Facebook 26.40% Home 17.2% Google+ 90 Arts and Crafts 12.4% Twitter 3.61% Style/Fashion 11.7% Pinterest 3.60% Pinterest 10.4 Food 10.5% Google+ 0.22% Inspiration/Education 9.0% Facebook 6 Holidays/seasons 3.9% LinkedIn 0.20% Humor 2.1% Twitter 3 Products 2.1% Mn users Pinterest has witnessed increased referral Travel 1.9% traffic as compared to its established Kids 1.8% peers Pinterest is the fastest adopted social Over 60% of pinboards fall into the top 5 media platform after Google+ Average time spent on the site categories As per TechCrunch, Pinterest is expected to have 180 million users by Nov 2012 Pinterest influences more sales transaction YouTube – 16.4 minutes Pinterest – 15.8 minutes Facebook – 12.1 minutes Pinterest is retaining and engaging users Pinterest drives more sales than as much as 2-3 times as efficiently as Twitter – 3.3 minutes Facebook Twitter was at a similar time in its history 4Source: Internet Marketing Inc.
  5. 5. Businesses are witnessing increased traffic from Pinterest to theirwebsites as compared to other social media sites For Perpetual Kid, Pinterest traffic converts to a sale at twice the rate of Facebook traffic Eye glass retailer Warbly Parker reports In 2011, Perpetual began its Pinterest that 11% of their social traffic is coming exposure and in mid 2011, the traffic from from Pinterest compared to 18% from Pinterest was around 0.20% Twitter However by December referral traffic from In October 2011, the website of Time Pinterest increased to 1% and currently Inc.’s Real Simple magazine witnessed accounts for 2.63% of traffic more traffic from Pinterest than Facebook., one of the first ecommerce players to integrate Pinterest across its website Better Homes and Gardens has highest Lowe’s has incorporated a Pinterest tab number of followers (25,391) on Pinterest on its Facebook page The average order value of sales driven as of Feb 2012. by Pinterest to has been Lowe witnessed 32% increase in their $180, 10% higher than overall site Best example of lifestyle brand doing followers on Pinterest and aims to average and 90% higher than Facebook great things on Pinterest. increased customer engagement 5Source: Internet Marketing Inc., Hubspot, News Articles
  6. 6. Lack of interactions between users and measuring success ratepresents some challenges for Pinterest adoption 25 20 15 Months 10 5 0 10 Million Users Reported Growth Actual Growth The company has attracted Lack of dedicated brand The biggest problem on Pinterest is growing fast but a valuation of $1 Billion, this pages specifically for Pinterest is that users don’t not at the pace claimed could be overvalued. business is a challenge. talk to each other Pinning certain images to If you are not a product Only time will tell who comes Success on Pinterest is Pinterest could constitute driven business, it can seem out on top for social media difficult to measure copyright infringement challenging to use Pinterest supremacy 6Source: Business Insider, The Sacramento Bee
  7. 7. Companies can use Pinterest as an effective Marketing Tool to gainmore insights about their consumers and competitors Gather Insight Into Your Buyer Feature Visual Content Create a User Generated Pinboard Add a Pin-it Button to Your Website Personas Enable other users to View pinboards of your Pinterest is a visual social This will help to expose your contribute their own pins to customers to understand network brand to a new audience your pinboards their interests Add Links in the Descriptions of Showcase Your Business Find Out What Your Competitors are Use Hash Tags Your Pins Personality Pinning Include links back to your Users can use hash tags to Pinterest has a heavy life All businesses should use website in your pins to drive tag their pins and make style focus, use it to give Pinterest for competitive traffic back to your website their content search-friendly your business a personality intelligence 7Source: Internet Marketing Inc., CIO
  8. 8. About SUMO Research Solutions (SRS) SUMO Research Solutions (SRS) offers outsourced business research services to consulting, research, financial advisory firms and corporate clients. Our services include industry and sector reviews, market estimation studies, competitive studies and partner search. We assist firms who wish to outsource their research needs to our centre in India. Geographically, our clients span across US, UK, Middle East and IndiaWe, at SRS are adept at collecting, analyzing and synthesizing our findings into information that can readily beused by your business. Our credo of hiring the best crop of consultants and research professionals ensures we gobeyond mere "information analysis" by drawing logical conclusions from the data.Our research process is our key differentiator and helps us stand tall among other market research firms. Theability to combine straight forward secondary research with complex primary research gives us the edge andassures our clients of genuine, verifiable results.We follow a structured process to ensure high quality standards and adherence to timelines, in all engagements.At SRS, we also believe in communicating with our clients at every stage and have a constant feedback mechanismto ensure that the research being conducted is in line with client objectives. 8
  9. 9. Contact DetailsMs. Nibha Kaul, CEOEmail: nibha.kaul@sumoresearchsolutions.comMob: +91-98192 13030URL: 9