pinterest as a marketing tool

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Pinterest as a Marketing Tool May 2012 Whitepaper

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Page 1: Pinterest as a Marketing Tool

Pinterest as a Marketing Tool

May 2012

Whitepaper

Page 2: Pinterest as a Marketing Tool

2

Disclaimer

To the viewers of this report

This report is prepared in accordance with our findings on Pinterest. This report has been prepared on the basis of desktop research conducted in May 2012. Because it’s a sample report created for business development purposes, our report may not be suited for any purpose other than to assist you in your evaluation of our research capabilities. Additionally, our report reflects events 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 or completeness.

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 to another party, in whole or in part, without our prior written consent.

Page 3: Pinterest as a Marketing Tool

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Pinterest, a pinboard-style social photo sharing website launched in 2010 is fast gaining traction among social media audience

is stepping up as a valuable tool for businesses

Pinterest is ….

Was launched in 2010

A virtual pinboard where people share and collect the things they love

is well funded by group of successful entrepreneurs and investors

As of Jan 2012, Women account for most of Pinterest users

20% 80%

Most of Pinterest users are between 25-44 years of age

65 or more

55-64

45-54

35-44

25-34

18-24

0-17

2%

5%

16%

25%

30%

17%

5%Age

Majority of Pinterest users live on household income between USD 25-75k

Annual Household Income (USD)

150,000 or more

100,000-149,999

75,000-99,999

50,000-74,999

25,000-49,999

0-24,999

3%

6%

14%

34%

35%

8%

Source: Internet Marketing Inc.

is built by a small team in Palo Alto, California

Founded by Paul Sciarra, Ben Silbermann and Evan Sharp

As per ComScore total number of unique visitors on Pinterest was ~12 mn

Number of Total Unique Visitors on Pinterest

Pinterest is growing at an astounding rate

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

418

608

1031

1270

2073

3295

4855

7516

11716

Thousands

Page 4: Pinterest as a Marketing Tool

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Marketing potential of Pinterest lies in its fast adoption coupled with high referral and engagement rates

As per TechCrunch, Pinterest is expected to have 180 million users by Nov 2012

Pinterest is the fastest adopted social media platform after Google+

Adoption rate after 2 years of launch

Twitter

Facebook

Pinterest

Google+

3

6

10.4

90

Mn users Pinterest has witnessed increased referral traffic as compared to its established peers

Referral Traffic (Jan 2012)

LinkedIn

Google+

Pinterest

Twitter

Facebook

0.20%

0.22%

3.60%

3.61%

26.40%

Pinterest is retaining and engaging users as much as 2-3 times as efficiently as Twitter was at a similar time in its history

Source: Internet Marketing Inc.

Most Popular pinboard categories

Over 60% of pinboards fall into the top 5 categories

Kids

Travel

Products

Humor

Holidays/seasons

Inspiration/Education

Food

Style/Fashion

Arts and Crafts

Home

1.8%

1.9%

2.1%

2.1%

3.9%

9.0%

10.5%

11.7%

12.4%

17.2%

Average time spent on the site

YouTube – 16.4 minutes

Pinterest – 15.8 minutes

Facebook – 12.1 minutes

Twitter – 3.3 minutes

Pinterest influences more sales transaction

Pinterest drives more sales than Facebook

Page 5: Pinterest as a Marketing Tool

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Businesses are witnessing increased traffic from Pinterest to their websites as compared to other social media sites

In October 2011, the website of Time Inc.’s Real Simple magazine witnessed more traffic from Pinterest than Facebook.

Eye glass retailer Warbly Parker reports that 11% of their social traffic is coming from Pinterest compared to 18% from Twitter

5

Best example of lifestyle brand doing great things on Pinterest.

Better Homes and Gardens has highest number of followers (25,391) on Pinterest as of Feb 2012.

Source: Internet Marketing Inc., Hubspot, News Articles

However by December referral traffic from Pinterest increased to 1% and currently accounts for 2.63% of traffic

For Perpetual Kid, Pinterest traffic converts to a sale at twice the rate of Facebook traffic

In 2011, Perpetual began its Pinterest exposure and in mid 2011, the traffic from Pinterest was around 0.20%

Lowe witnessed 32% increase in their followers on Pinterest and aims to increased customer engagement

Lowe’s has incorporated a Pinterest tab on its Facebook page The average order value of sales driven

by Pinterest to Boticca.com has been $180, 10% higher than overall site average and 90% higher than Facebook

Boticca.com, one of the first ecommerce players to integrate Pinterest across its website

Page 6: Pinterest as a Marketing Tool

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Lack of interactions between users and measuring success rate presents some challenges for Pinterest adoption

The company has attracted a valuation of $1 Billion, this could be overvalued.

Pinterest is growing fast but not at the pace claimed

10 Million Users0

5

10

15

20

25

Reported Growth Actual Growth

Mon

ths

The biggest problem on Pinterest is that users don’t talk to each other

Pinning certain images to Pinterest could constitute copyright infringement

Success on Pinterest is difficult to measure

Only time will tell who comes out on top for social media supremacy

Source: Business Insider, The Sacramento Bee

If you are not a product driven business, it can seem challenging to use Pinterest

Lack of dedicated brand pages specifically for business is a challenge.

Page 7: Pinterest as a Marketing Tool

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Companies can use Pinterest as an effective Marketing Tool to gain more insights about their consumers and competitors

Pinterest is a visual social network

Feature Visual Content

Enable other users to contribute their own pins to your pinboards

Create a User Generated Pinboard

This will help to expose your brand to a new audience

Add a Pin-it Button to Your Website

View pinboards of your customers to understand their interests

Gather Insight Into Your Buyer Personas

Include links back to your website in your pins to drive traffic back to your website

Add Links in the Descriptions of Your Pins

Users can use hash tags to tag their pins and make their content search-friendly

Use Hash Tags

Pinterest has a heavy life style focus, use it to give your business a personality

Showcase Your Business Personality

All businesses should use Pinterest for competitive intelligence

Find Out What Your Competitors are Pinning

Source: Internet Marketing Inc., CIO

Page 8: Pinterest as a Marketing Tool

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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 India

We, at SRS are adept at collecting, analyzing and synthesizing our findings into information that can readily be used by your business. Our credo of hiring the best crop of consultants and research professionals ensures we go beyond 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. The ability to combine straight forward secondary research with complex primary research gives us the edge and assures 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 mechanism to ensure that the research being conducted is in line with client objectives.

Page 9: Pinterest as a Marketing Tool

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Contact DetailsMs. Nibha Kaul, CEOEmail: [email protected]: +91-98192 13030URL: www.sumoresearchsolutions.com