Pinterest is also expanding its pricing options. Whereas its models used to focus on top-of-funnel (CPM) and bottom-of-funnel (CPC) sales, its new CPE pricing model is meant for advertisers looking for middle-of-the-funnel consumers. And the CPA one will go a step further down the funnel than CPC, with advertisers paying for clicks that drive sales.
Engagements can be applied to Pinterest members pinning things, clicking on images or activating close-up views. These activities, Kendall said, map to ad objectives around driving intent.
Advertisers will still get earned media – bonus engagements – even if they’re buying on CPE models. Downstream, Pinterest saw brands receive 30% earned media during beta tests of the CPM model.Kendall expects these numbers to hold true for CPE buys.
Pinterest will run CPM, CPE, CPC and CPA buys in a unified auction in which advertisers with highly engaging pins will pay less per engagement since the ads are efficient.
“We’re carefully tying the value marketers pay us for in terms of the value we’re providing back to them in user action,” Kendall said. “We’re taking a lot of the risk of working with Pinterest out.”
Pinterest hopes to prove out the platform’s value as an advertising medium, so its advertising clients will continue to invest.
Wendy’s, for its part, is one of the first advertisers using Cinematic Pins, joining the ranks of Banana Republic, L’Oreal and Nestle.
Cinematic Pins are essentially Promoted Pins with video elements.
Wendy’s will test the unit in June, featuring creative that shows how strawberries picked from the field wind up in the chain’s Strawberry Fields seasonal salad.
“We think Pinterest will help us tell a deeper story to an audience that’s interested in hearing that story,” Wendy’s Rhoten said.