Digital Transformation

Pinterest takes aim at Google with auction-based pricing as it shakes up ad offering

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By Rebecca Stewart | Trends Editor

August 12, 2016 | 3 min read

Visual bookmarking tool Pinterest has debuted an auction-based system that allows advertisers to bid on CPM campaigns.

Pinterest previously only allowed brand partners to purchase CPM, or cost per-thousand impressions, slots at a fixed price but the latest shakeup means they will now be able to bid on inventory on a case-by-case basis.

Pinterest Ads

Pinterest has introduced auction-based pricing

The bidding offering is available to all US, UK and Canadian ads using Pinterest via its Ads Manager platform, and is similar to Google's Display Network.

Writing in a blog post, Pinterest's partnership lead Jenny Chiu advised brands: "By using this new solution, you'll get more impressions for your campaigns at more efficient rates and drive higher results."

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The company has also announced that marketers can now add frequency capping, a function that will let them stipulate the maximum number of times a user can see their ads, on to their campaigns.

Pinterest says brands using it to advertise their services and products have noted double digit lifts in all brand metrics.

In a recent study, consumer packaged goods advertisers saw on average five-times more in-store sales per-impression than the industry average, it claims - with brands like JCPenney, The Home Depot and General Mills having already trialed the platform's latest auction CPM solution.

Pinterest has been upping the focus on its advertising model lately; as well as trying to crack the UK market it's also recently launched a global campaign with Burberry.

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