As budgets tighten, some brands are taking a second look at their Pinterest spend.
One agency head who did not wish to be named told Modern Retail that 10 clients, or around 25% of the agency’s overall portfolio pulled out of running paid ads on Pinterest this year. The founder of e-commerce agency Commerce Canal also told Modern Retail that Pinterest spending has dropped significantly this year, and that its clients are spending 32.4% less on the platform versus the same time last year. As a result of the economy’s perceived weakness, agency heads said that brands have started to focus more on the bottom of the funnel marketing channels. Because of that, Pinterest — a channel that brands have long struggled to attribute sales to — is no longer making the cut for some companies.
These pullbacks from brands are hurting the social media platform at a time when it is developing new features to drive more shopping on the platform. Last year, Pinterest appointed senior Google executive Bill Ready as chief executive officer to lead a new phase of growth for the company by encouraging more shopping on Pinterest. This year, to further build its shopping intent Pinterest said it is encouraging merchants to upload their catalogs on the website, and helping advertisers test new formats like Premiere Spotlight.Modern Retail