Social media leader Pinterest reports that with over 1 billion shoppable products on their platform, revenue from shoppable ads is growing at double the rate of revenue overall. Even as Pinterest’s overall user base has declined, revenue per user is reported to have increased by 17%. Despite Pinterest’s early experimentation with commerce tools, the recent growth in social commerce leads some advertisers to see them as falling behind. According to Duane Brown, CEO of agency Take Some Risk, “It is a marathon and maybe one day Pinterest will catch up,” he said. “But right now they are in last place.” As important as speed to market is in the social media realm, building the right platform tools is even more critical. “If it’s a core product experience or an ad product experience, I need to make sure that we’re building to facilitate for those two things,” says Pinterest Chief Revenue Officer Bill Watkins. “Because if not, then we’re not building the best experience for our users and we’re not building the best products for advertisers.”
Get a 360* view of social commerce and the impact it’s having on the payments industry in the recent research from Mercator Advisory Group.
Overview by Don Apgar, Director, Merchant Services Advisory Practice at Mercator Advisory Group