What Happened
Pinterest is moving away from fixed-price ads toward a more performance-based ad buying model as the social site continues its quest to appeal to advertisers. To kickstart the change, the company launched yesterday a new auction process for marketers to bid on its ad inventory, which it has tested with brands such as Home Depot, JCPenney, and General Mills. To ensure a good user experience, Pinterest is also adding the support for frequency capping so that consumers are not bombarded with the same highest-bidding ad.
What Brands Need To Do
As Pinterest transitions to an auction-based ad buying model, brand advertisers gain more flexibility and accountability for planning their campaigns on Pinterest. With the new ad buying model, brands can optimize their ad buying on Pinterest in accordance with their campaign goals. If your brand was hesitant about buying ads on Pinterest due to its fixed pricing, this move should come as a welcome change that may be worth exploring.
Source: AdWeek