The photo sharing social network follows industry trend
Following Instagram and Snapchat’s decisions to allow Ads on their platforms, Pinterest too is opening up to advertising. Within B2C marketing, brands have realised the potential for high returns on social networking platforms where aesthetic is everything. Like Instagram, Pinterest is full of immersive content. If advertisers master their engagement well, there are opportunities for them to increase conversions. Some ad buyers are sceptical however, given that Pinterest’s technology is relatively limited compared to its competitors. Instagram, for example, is able to use parent company, Facebook’s technology. Pinterest has been noted as a strong alternative to search advertising, as users are able to upload, collect and bookmark what interests them. This offers a lot of potential for advertisers, as Pinterest now allows marketers to collect data concerning its users. Technology providers have already swooped in to make sense of Pinterest users and how they respond to products. This in turn will help advertisers to serve their ads based on the collection of user’s interests and aspirations. With the rise of AdBlock, publishers such as Pinterest are looking to generate revenue from native advertising - that is, advertisements that are embedded in the support, which users cannot block.
Adblock and the confidence crisis of advertisers
With AdBlocker posing a serious threat to publisher’s revenues, the Internet Advertising Bureau (IAB) has launched a LEAN ads program with clear guidelines for advertisers on what ads are likely to push people to install ad blockers in the first place. City AM has taken serious measures to convince readers that they benefit from seeing ads. They are not alone in this approach to offset losses in revenue due to a lack of advertiser’s confidence. Most publishers are simply reminding their audiences that by blocking ads they may damage the content they want to see, and that they may even have to subscribe online in order to keep publications going. City AM’s digital director Martin Ashplant had two striking facts in order to justify the paper’s decision: the first that around 20% of its 1.2 million monthly browsers are using ad blocking software. Second that ad blocking is set to cost publishers in excess of $40bn by the end of 2016 according to a report from Adobe and anti-ad blocking firm PageFair. This continues the ongoing discussion concerning AdBlock in that advertisers, publishers and technologists need to work together in order for audiences to accept online ads.
American brands should be using programmatic to transform the way they advertise on TV.
What with the imminent boom in Smart TV, it may be wise for brands to use their new foray into programmatic buying as a foundation to advertise more intelligently on TV. American brands are diverting their ad spend away from conventional television advertising, moving towards digital video. To help them make this transition, they are relying on programmatic buying strategies. 91% of brands and agencies in the US are now buying video programmatically. It is of course a welcome trend that brands are pumping more into digital video and programmatic buying. After all, by “following their consumers online”, they are reaching their desired audience more effectively. However, the danger is that this is done at the expense of traditional TV advertising. (While digital video ad spend is steadily increasing, TV ad spend is beginning to stagnate.) Instead of cutting out traditional TV advertising altogether, they should be using programmatic to transform the way they advertise on TV. Even in the UK, Sky News launching its own programmatic service to sell ads on every platform, even Smart TV.
10 days until Web Summit! See you there!