Accelerating Pinterest's Business Utilization with Two Solutions: Social Commerce and Advertising (Part 2)

Pinterest is an idea exploration tool where users can discover and organize images and videos related to interests like fashion, travel, and recipes. In June 2022, Pinterest launched its advertising business. When companies utilize its advertising features, they can display images in highly visible locations, enabling precise targeting of their desired audience.Furthermore, in May 2023, Dentsu Digital Inc. launched " Pinterest for Social Commerce," connecting Pinterest with e-commerce. The business utilization of Pinterest is advancing.

In this article, we explore the potential of Pinterest for business through interviews with Dentsu Digital Inc. project members Nobuyuki Suzuki, Sota Aoki, and Takumi Miyagi. In the second part, we discuss the overview of Pinterest advertising and the benefits for businesses.

Reach early adopters and quickly promote products and services

Q. Could you tell us more about Pinterest's advertising business, which began in June 2022?

Suzuki: Pinterest advertising, already available overseas, launched in Japan in June 2022. Compared to general search engines, Pinterest tends to capture trends earlier. This makes it unique for reaching users quickly. For example, while searches for Christmas-related terms spike on major search engines closer to the holiday in late December, on Pinterest, they start increasing around late September and peak from October to November.Another key point is the ability to seamlessly direct users to external sites, allowing ads to be designed with post-click engagement in mind. While domestic adoption is still growing, we believe Pinterest can deliver a unique user experience when effectively combined with other social media advertising.

Aoki: A major feature of Pinterest is its save function. Users can save images by pressing the save button on displayed ads, effectively carrying "Pinterest ads" with them on their smartphones.For example, if an apparel brand runs an ad for clothing, a user who thinks "This outfit is cute" can save the ad and then go directly to a store to purchase a similar item. This characteristic—where ads don't just end with a temporary impression but remain long-term in users' 'wish lists' or 'idea boards'—is also highly valued by our corporate clients.

Q. It's interesting to note that Pinterest users tend to "search earlier" compared to other search engines or social media. What benefits does this offer advertisers?

Suzuki: A key characteristic of Pinterest is that 97% of searches are "non-branded" searches using keywords other than specific product or brand names. Users conduct these vague searches thinking "I want something like this" at an earlier stage than trend waves or seasonal events. The benefit is being able to present ads for specific products or brands at that precise moment.

Aoki: Furthermore, using "Pinterest for Social Commerce" directly connects to sales, generating higher effectiveness. We hope you'll look forward to the synergistic effects of using them together.

Achieve long-term ad campaigns while reducing costs and effort

Q. It's been over a year since Pinterest Ads launched in Japan. How has the response been?

Aoki: Initially, we primarily engaged with companies in sectors highly compatible with Pinterest, such as luxury brands, the beauty industry, and home builders. Building on that success and focusing internally on creating case studies, we've expanded this year to include companies in the food, beverage, automotive, and electronics manufacturing industries. More clients are recognizing Pinterest's unique characteristics, distinct from other social networks, and are increasingly using it alongside other platforms.

Q. Are there specific approaches to advertising expression or creative development unique to Pinterest?

Aoki: It varies by industry, but a common approach is creating creatives that emphasize "scene appeal." For example, with beer ads, we believe ads that naturally convey a scene of people enjoying beer are more appealing than simply showing a single image of the product.When targeting users searching for camping ideas with a non-alcoholic beer ad, instead of showing just the can, presenting an ad depicting "enjoying non-alcoholic beer during camping" reduces the "advertisement feel." This allows the ad to be perceived as "just one idea" among others.

Q. Do you have any suggestions for "companies that should utilize Pinterest ads" or "ways to use them"?

Aoki: Because Pinterest users search early, a single ad can have long-lasting ripple effects.For example, many companies run sales on appliances and interior goods around the New Year. However, on Pinterest, even during the New Year period, there are users already searching for appliances for their new spring lifestyle. Targeting these users allows you to promote your New Year sales while indirectly appealing to products they might use much later. We believe this demonstrates how Pinterest's platform characteristics can be leveraged for ads that align with the user journey.

Miyagi: For corporate social media managers, we want to highlight Pinterest's ease of management. Social media requires creating images and copy for each piece of content, which demands significant effort. Pinterest, however, is a stock-based platform where content accumulates, not a timeline-based one. This gives content a longer lifespan. It also features automated bulk creative deployment, reducing operational costs and preventing burnout, enabling long-term management.

Q. Could you each briefly share what challenges Pinterest ads and "Pinterest for Social Commerce" can solve for businesses?

Aoki: Previously, only programmatic ads (ads where bids are placed in real-time for each ad impression) were available, but now we also support scheduled ads (ads with fixed budgets, durations, and content). Some people avoid Pinterest, saying, "I've never used it, so I don't really understand it." However, looking at current results, we believe it's a platform that can deliver sufficient advertising effectiveness when combined with other media. We encourage you to consult with us on how to use Pinterest effectively.

Suzuki: Pinterest can also be used to drive traffic to external sites. Since you can attach external URLs to each individual post, you can direct users to your company's e-commerce site or owned website.Many companies have carefully crafted content, such as sites about SDGs or pages showcasing how to use their products. However, many also face the challenge that these sites often go unnoticed. Pinterest can link to these sites, serving as an entry point to showcase the valuable content sitting on your owned sites.

Miyagi: Research shows Pinterest users have a significantly higher search rate after finding content they're interested in compared to other social media platforms. Pinterest can be highly effective for increasing branded search volume. We don't advocate using only Pinterest; rather, we want to help you effectively leverage Pinterest's unique features while seamlessly integrating it with other social media and platforms.

Pinterest has carved out a unique position as an idea exploration tool for particularly information-sensitive individuals. For users harboring vague ideas like "I'd like to try something like this" or "It would be great if something like this existed," Pinterest's business application—proposing concrete products and services—definitely seems to have a certain effectiveness. It may offer a different angle from traditional social media advertising to connect with users.