Pinterest, the online social site that allows users to "pin"their favorite things to their personal wall is now looking to monetize the service by selling "pins" to businesses.
Pinterest currently has millions of users and a $4 billion valuation, but as of yet it does not actually make any money. The introduction of Promoted Pins may be the game-changer that transforms this trend.
"You express yourself through what you're interested in," Shareroot CEO Noan Abelson told NPR. Shareroot is company founded to help brands promote themselves on Pinterest. "And because Pinterest is about interests, it's very, very easy for a brand to be a part of that conversation."
So far Banana Republic, General Mills and Target have signed-on for promoted pins. The price could be more than $1 million, depending on how many people the ads reach given that Pinterest has over ten million users. The service, however may only be useful in limited applications--despite its many, many users, Pinterest enthusiasts are almost entirely younger women with children--meaning promoted pins could be very useful for cosmetics and fashion companies, less so for the makers of power tools and engine parts.
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