Today’s trend in the social media world is to make money with advertising, and some of the top companies on the list are Facebook, Google and many more. However, Pinterest is also trying to make more money by giving advertisers better targeting so they can reach the right people.
Pinterest has built an extensive suite of tools internally to figure out which rabbit hole to divert users to, and now it’s opening some of that knowledge to advertisers.
Per the data, Pinterest has also been working on it, and it has developed the deep-linking startup called URX, which has now launched a new ad product within Pinterest’s Taste Graph. The Taste Graph can develop more than 100 billion pins based on someone’s interests.
The company has given it the name “Taste Graph” because this tool can show what users like and also how their preferences change over time. It’s another move as Pinterest tries to position itself as an alternative to big platforms with an entirely unique data set based on its user behavior.
“One of the biggest difference with the Taste Graph compared to what we were doing before was really diving into understanding the nuances of how we relate Pinners to interests based on the recency and frequency of their engagement,” John Milinovich, product manager for the Taste Graph, said. “We’re much smarter about how we decay interests from a user’s taste profile so that we can better personalize their recommendations. So if you haven’t pinned about your wedding in a while, you will stop seeing wedding content.”
The good news for the advertisers is that they can now see about 5,000 interest categories that will be available to advertisers in the coming weeks. Pinterest studies show that there is an increased click-through rate of 50 percent by super-targeted ads and dropped the cost-per-click by 20 percent for brands like Nordstrom that have used the tool.
“We really believe in this idea of machine-assisted human curation,” said Milinovich. “The best way of being able to source new interests is by using the data that we already have but also being able to work closely with editors or curators to actually help verify and sanity-check some of these things. For the Taste Graph today, everything goes through human editors before it gets offered to outside advertisers.”