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Last Updated on October 21, 2023 by Arif Chowdhury
Pinterest is a widely embraced social media hub where users uncover, bookmark, and share visuals aligned with their passions. The platform, catering to diverse interests, also extends a palette of promotional avenues for businesses looking to connect with potential patrons in the throes of their quest for inspiration, solutions, and innovative concepts.
Venturing into Pinterest advertising carries the potential to exert a substantial impact on brand visibility, visitor traffic, lead generation, and revenue escalation. Nevertheless, it’s vital to embark on this advertising journey with a comprehensive understanding of the financial aspect. Grasping the determinants of Pinterest ad pricing is critical.
In the pages of this blog post, we delve into the universe of Pinterest advertising, elucidating its intricacies and cost dynamics in the year 2023. Our expedition navigates through the currents of auction-based advertising, various targeting options, ad formats, and optimal ad placements.
Furthermore, we extend insights into the prudent budget establishment, enabling you to discern the probable costs aligned with your objectives. We furnish guidance on fine-tuning your advertising expenses and keeping your finger on the pulse of the latest trends dominating the realm of Pinterest advertising.
Factors Affecting Pinterest Advertising Costs
The expenditure associated with Pinterest advertising hinges on a multitude of variables, each exerting its unique influence on the bottom line. To comprehend this intricate financial landscape, dissecting the key determinants that shape Pinterest advertising costs is imperative.
Let’s explore these factors in greater detail.
Pinterest employs an auction system to determine ads’ display and associated costs. In this competitive arena, you find yourself vying with other advertisers who may set their sights on the same or similar audience demographics.
To participate in this auction, you must establish a maximum bid for each ad group or campaign. This maximum bid signifies the highest amount you’re willing to allocate for each impression or action your ad garners, whether it be a click, engagement, or conversion.
The actual price you pay for your ad placement is calculated based on the second-highest bid in the auction, with an additional $0.01.
For instance, if your maximum bid stands at $2.00 and the second-highest bid clocks in at $1.50, your cost per impression or action amounts to $1.51.
While setting a higher bid increases the likelihood of your ad winning the auction and gaining visibility, it’s crucial to note that a higher bid doesn’t guarantee optimal performance or goal achievement. Other factors come into play, including the quality and relevance of your ad content, the characteristics and behavior of your target audience, and the seasonal fluctuations and demand trends within your niche. These elements collectively influence the success of your Pinterest advertising efforts.
Pinterest extends a spectrum of targeting options, empowering you to connect with your ideal audience grounded in diverse criteria such as demographics, interests, keywords, behaviors, and more. Moreover, you can craft custom audiences derived from your website visitors, email subscribers, or customer databases.
These targeting tools serve as a compass to hone in on the individuals most likely to engage with your products or services. However, it’s important to recognize that the granularity of your targeting has a direct bearing on your Pinterest advertising costs.
In essence, the more precise and specialized your targeting, the higher your cost per impression or action is likely to be. This is attributed to the fact that you are narrowing your reach to a smaller yet more pertinent audience with heightened intent and value.
On the contrary, if your targeting is overly broad or generic, you might reach a larger but less relevant audience characterized by reduced intent and value. This could lead to lower costs per impression or action but may also result in diminished performance and return on investment.
Striking the right balance in your targeting strategy is paramount. The aim is to uncover the optimal combination that maximizes your advertising results while minimizing your costs. It’s a delicate equilibrium that entails thoughtful consideration of your campaign objectives, audience characteristics, and budget constraints. This balance is pivotal in achieving an efficient and effective Pinterest advertising campaign.
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Pinterest’s versatile array of ad formats provides options that align with various objectives and creative inclinations. The principal ad formats on Pinterest encompass:
- Standard Pins: These are conventional pins that populate users’ home feeds and search results. They can encompass images or videos, complete with captions and links.
- Carousel Pins: These pins feature multiple images or videos, permitting users to swipe horizontally. They are excellent for highlighting various aspects or advantages of a product or service.
- Collection Pins: This format melds a primary image or video with several smaller images beneath it, showcasing a curated assortment of products or concepts. Users can explore and shop from these collections.
- Video Pins: These pins spotlight auto-play videos with the option for sound. They effectively seize user attention and narrate compelling stories.
- Story Pins: Story Pins encompass multiple pages of images or videos adorned with text overlays and stickers. They can disseminate tips, tutorials, recipes, and other content that users can save or follow.
- Shopping Pins: These pins integrate product details like price, availability, and reviews. They facilitate users’ direct transition to your website or app, enabling them to make purchases.
- Promoted App Pins: These pins concentrate on promoting your mobile app, granting users the opportunity to download it directly from Pinterest.
It’s pivotal to recognize that the cost of your Pinterest ads may fluctuate depending on your choice of ad format. Some formats might command higher costs per impression or action compared to others due to their enhanced features, functionality, or visibility.
For instance, video pins, with their immersive nature, could entail higher expenses than standard pins. Similarly, shopping pins, tailored for conversions and sales, may have higher costs than carousel pins.
Hence, the selection of the ad format should be a thoughtful process that aligns with your objectives, financial constraints, and creative flair. It’s about identifying the format that best harmonizes with your campaign goals and resonates with your target audience while optimizing your budget allocation.
Pinterest extends the flexibility to decide where your ads will make their appearance on the platform with several key ad placement options, each tailored to cater to distinct user behaviors and intents:
- Browse: In this placement, your ads grace users’ home feeds while they peruse diverse categories and topics. It offers exposure to a wide array of users casually exploring the platform.
- Search: This placement showcases your ads within users’ search results as they actively seek specific keywords or phrases. It targets users with a high level of intent who are actively looking for something.
- Shop: Here, your ads make their presence felt in users’ shopping feeds, where they’re actively browsing and shopping for products. This placement aims at users with a strong purchase intent.
- Explore: Your ads appear in users’ explore feeds, where they unearth fresh content and trends. This placement aligns with users in a discovery mode.
It’s worth noting that the cost of your Pinterest ads may differ depending on the ad placement you opt for. Certain placements might entail higher costs per impression or action compared to others, driven by factors like exposure, relevance, and user intent.
For example, search ads targeted at users actively seeking something may demand higher costs than browsing ads. Similarly, shop ads, which engage users prepared to make a purchase, might carry higher costs compared to explore ads.
Because of this, the placement of your ads should be in line with the intentions, behaviors, and stages of the customer journey of your target demographic. By ensuring this alignment, you can optimize your budget allocation and boost the efficacy and efficiency of your Pinterest advertising strategy.
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Pinterest Advertising Cost Structures
Pinterest provides a variety of cost structures, allowing you to pay for your ads based on different metrics and outcomes, each catering to distinct campaign objectives and expectations:
- Cost-Per-Click (CPC): With CPC, you pay for each click your ad garners. This cost structure is apt for campaigns seeking to drive traffic to your website or app, as you are charged for actual user engagement.
- Cost-Per-Mille (CPM): CPM entails paying for every 1,000 ad impressions. This cost structure is well-suited for campaigns aimed at enhancing brand awareness or maximizing reach as you pay for the visibility of your ad.
- Cost-Per-Engagement (CPE): Under CPE, you pay for each engagement your ad elicits. Engagements encompass closeups, saves, or clicks on your ad. CPE is fitting for campaigns designed to generate interest or prompt consideration for your products or services.
- Cost-Per-Action (CPA): CPA involves paying for each specific action your ad catalyzes. Actions are defined as conversions, sales, leads, or app installations occurring within 30 days of user interaction with your ad. CPA aligns with campaigns that aim for precise and measurable results.
It’s essential to understand that the cost of your Pinterest ads may vary depending on the chosen cost structure. Some structures might have higher costs per impression or action compared to others due to the value or certainty they offer.
For instance, CPA ads may command higher costs than CPM ads because they assure a desired outcome. Similarly, CPC ads may carry higher costs compared to CPE ads, as they signify a higher level of user intent.
Selecting the right cost structure hinges on the harmony between your campaign objectives, performance expectations, and the specific metrics that matter most to your advertising efforts. The choice should align with your goals, ensuring you allocate your budget in a manner that best serves your campaign’s intended impact.
Pinterest Advertising Budget Considerations
Before embarking on a Pinterest advertising campaign, it’s imperative to set a budget that aligns with your objectives, resources, and the potential costs involved. Here are some practical tips on how to go about it:
- Daily or Lifetime Budget: Begin by defining whether you want to set a daily budget or a lifetime budget for each campaign or ad group. A daily budget signifies the maximum amount you’re willing to spend per day on your ads. On the other hand, a lifetime budget is the total amount you’re prepared to allocate for the duration of your campaign or ad group. You can also establish an end date for your campaign or ad group to exercise control over when your ads cease running.
- Calculate Potential Costs: Calculate the potential costs based on your campaign objectives and assumptions. For example, if your objective is to achieve 100 conversions with a CPA (Cost-Per-Action) of $10, you can calculate that your potential cost will be $1,000 ($10 x 100). Similarly, if your goal is to garner 10,000 impressions with a CPM (Cost-Per-Mille) of $5, your potential cost would be $50 ($5 x 10).
- Optimizing Ad Spend: Maximize the efficiency of your ad spend by engaging in testing and analysis. Experiment with different variables and measure their impact on both costs and results. This could include testing various bids, targeting options, ad formats, and ad placements to identify the best-performing and cost-effective combinations. Employ tools such as conversion tracking, analytics, and reporting to monitor and assess your campaigns. Making data-driven decisions and continual improvements is key. Also, embrace Pinterest’s best practices and recommendations to enhance your ad creative, copy, and landing page, thus improving overall performance.
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Pinterest Advertising Trends for 2023
Pinterest advertising is in a state of constant evolution, adapting to the changing landscape of user preferences and advertiser needs.
As you plan your Pinterest advertising campaigns for 2023, it’s crucial to be aware of the emerging trends that will shape the platform. Here are some key trends to keep in mind:
- Rise of Video Ads: Video ads are gaining popularity and effectiveness on Pinterest. They capture users’ attention and convey information and emotion effectively. In 2022, Pinterest reported a significant increase in video views, and video ads were found to boost brand awareness, favorability, and purchase intent. In 2023, video ads will continue to grow, offering new features such as sound-on options, vertical formats, and Shoppable tags. While video ads may have higher costs per impression or action, they can yield a higher return on investment due to their enhanced engagement and conversion potential.
- Expansion of Shopping Ads: Shopping ads are gaining traction on Pinterest, allowing users to discover and purchase products directly on the platform. Pinterest is enhancing its shopping features with product catalogs, dynamic retargeting, shop tabs, and a verified merchant program. In 2023, shopping ads will become more accessible and seamless as Pinterest integrates with more e-commerce platforms like Shopify, WooCommerce, and BigCommerce. While shopping ads may involve higher costs, they can offer a lower cost per result and higher ROI by driving brand consideration and sales.
- Audience Network Launch: Pinterest introduced the Audience Network in 2022, enabling advertisers to extend their reach beyond Pinterest to other apps and websites within the network. This feature is set to launch in 2023 and will offer various ad formats, including standard pins, video pins, carousel pins, and collection pins. While it may have lower costs per impression or action compared to Pinterest-only ads due to increased ad inventory, it may also have lower ROI and a higher cost per result as it reaches a potentially less relevant or intent-driven audience.
As you plan your Pinterest advertising campaigns for 2023, consider how these trends may impact your advertising costs and performance. Video and shopping ads may require a higher initial investment but can yield greater returns in terms of brand exposure, consideration, and sales.
Meanwhile, Audience Network could provide additional reach but may require careful monitoring to ensure it aligns with your campaign goals. Continuously assess your campaign performance and be prepared to adapt your strategy to optimize your results and budget in this dynamic advertising landscape.
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Tips for Cost-Effective Pinterest Advertising
Achieving a cost-effective Pinterest advertising campaign requires a strategic approach to maximize your ROI and minimize unnecessary expenses. Here are some practical tips to help you get the most out of your Pinterest advertising budget:
1. Maximize ROI with Audience Focus:
- Identify and target the most relevant and valuable audience segments for your business. Leverage Pinterest’s audience targeting options to narrow down your reach to those most likely to engage and convert.
- Carefully choose ad formats and placements that resonate with your target audience and align with your campaign objectives.
- Set clear and realistic goals and key performance indicators (KPIs) to track your progress and measure success accurately.
- Implement accurate tracking and attribution methods to connect conversions and sales to your Pinterest ads.
2. Reduce Unnecessary Expenses:
- Set a budget that is both reasonable and flexible, allowing for adjustments based on campaign performance.
- Bid strategically and competitively, taking into account factors like ad placement, audience, and competition. Regularly assess your bid strategy to ensure it aligns with your goals.
- Be mindful of over-saturation and ad fatigue by rotating ad creatives and refreshing your content to maintain user engagement.
- Regularly review campaign and ad group performance, and be prepared to pause or stop underperforming or irrelevant campaigns to prevent unnecessary spending.
3. Measure and Optimize for Cost-Efficiency:
- Utilize tools like A/B testing, experiments, and optimization rules to test different variables, such as ad copy, creative, targeting options, and bid strategies. These experiments can help you identify the optimal combinations that deliver the best results at the lowest costs.
- Employ features like frequency capping to control how often your ads are shown to users, preventing overexposure that may lead to increased costs.
- Use pacing and scheduling options to control when and how fast your ads are displayed, aligning with user behavior and peak engagement times.
By implementing these strategies, you can make your Pinterest advertising campaigns more cost-effective, ensuring that your ad spend generates the best possible return on investment while minimizing unnecessary expenses. Regular monitoring and adjustment are key to optimizing your results and budget over time.
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Frequently Asked Questions (FAQs)
How much should I budget for Pinterest ads?
Determining the ideal budget for Pinterest ads is indeed a variable process, contingent on numerous factors. As you mentioned, elements such as your campaign objectives, industry, target audience, competition, and expected results play a pivotal role in budget allocation.
The survey data you shared provides a helpful starting point for businesses looking to set their Pinterest ad budgets. It indicates that a significant proportion of businesses spend between $0.00 and $500 per month on Pinterest ads, with a majority allocating 0% to 30% of their overall advertising budget to Pinterest.
These ranges offer a useful benchmark, but it’s essential to recognize that they are not one-size-fits-all figures. Your specific budget should be tailored to your unique circumstances and the outcomes you aim to achieve.
It’s advisable to consider your specific goals and track the performance of your campaigns, making adjustments as necessary to optimize your budget for the best possible results. Flexibility and adaptability are key in Pinterest advertising, allowing you to fine-tune your budget as you gain insights into what works best for your business.
Are Pinterest ads cheaper than Facebook?
Comparing the pricing and cost structures of Pinterest ads and Facebook ads is indeed complex due to their inherent differences. Each platform caters to unique demographics, user behaviors, and campaign objectives, making direct comparisons challenging. However, certain studies have indicated distinctions in costs between the two platforms.
Pinterest ads have been observed to often have lower costs per click (CPC), costs per impression (CPM), and costs per conversion (CPA) in some cases when compared to Facebook ads. This discrepancy may be attributed to Pinterest’s relatively lower competition and the more intent-driven nature of its users. Pinterest users frequently engage with the platform to discover and save ideas, making them potentially more receptive to relevant advertising.
Nevertheless, it’s important to emphasize that the comparative cost advantage of Pinterest ads is not a universal truth. The actual costs can still vary significantly based on a multitude of factors, including your campaign goals, industry, target audience, creative quality, geographic location, and the competitiveness of your niche.
Ultimately, the choice between Pinterest and Facebook ads should be driven by your specific objectives and the alignment of each platform with your audience and industry. It’s advisable to experiment with both platforms and closely monitor performance metrics to determine which one provides the best results for your advertising goals and budget.
The cheapest social media ads depend on what metrics and outcomes you are looking for. Different social media platforms have different advantages and disadvantages in terms of reach, engagement, conversion, and ROI.
Therefore, you need to consider your objectives, target audience, budget, and performance indicators when choosing the best social media platform for your ads. According to some studies, the average costs per click (CPC) and costs per thousand impressions (CPM) for some popular social media platforms in 2022 are:
|Platform||Average CPC||Average CPM|
As you can see, these numbers vary widely depending on the platform and the ad format. Therefore, you need to test and optimize your campaigns on different platforms to find the most cost-effective one for your business.
Are Pinterest ads profitable?
Pinterest advertisements can prove to be lucrative when you adhere to established guidelines and fine-tune your campaigns to align with your specific objectives and target audience. According to Pinterest’s own data, their ad platform has the potential to yield a 2x higher return on ad spend (ROAS) for retail brands, along with a 2.3x more cost-efficient cost per conversion (CPC) when compared to other social media platforms.
Nonetheless, it’s crucial to note that the profitability of Pinterest ads isn’t guaranteed for all businesses or campaigns. To ensure success, it’s essential to consistently monitor and evaluate your performance and return on investment (ROI). Employing tools like conversion tracking, analytics, and reporting can be immensely helpful in this regard.
Additionally, you should remain committed to a process of testing and fine-tuning various aspects of your advertising strategy. This includes adjusting your bids, refining targeting options, experimenting with different ad formats, and optimizing ad placements. These iterative improvements are essential for achieving more favorable outcomes and enhancing the overall profitability of your Pinterest ad campaigns.
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What is the best size for Pinterest ads?
Pinterest suggests that when creating your pins, it’s advisable to adhere to an aspect ratio of 2:3 or even slightly taller, falling within the range of 600×900 pixels as the minimum and 600×1560 pixels as the maximum. The rationale behind this recommendation is that vertical pins tend to be more effective in occupying a significant portion of the screen and capturing users’ attention, surpassing horizontal or square pins in this regard.
However, it’s worth noting that using the maximum size for your pins isn’t always the best approach, as it can result in overcrowding or unwanted cropping on certain devices or within specific placements. It’s a good practice to experiment with different pin sizes to determine which dimensions yield superior results for your specific objectives and target audience. This flexible approach allows you to fine-tune your pin dimensions for optimal performance and engagement.
Is Pinterest marketing worth it?
Effective Pinterest marketing can be a valuable endeavor, provided you have a well-defined strategy and an audience that aligns with the platform. Pinterest stands out among social media platforms as a unique space where users can explore, curate, and share visual content that caters to their diverse interests.
These users often turn to Pinterest for inspiration, innovative ideas, and practical solutions, whether it’s for personal or professional projects. Furthermore, Pinterest users exhibit a greater propensity to express interest in new products and brands compared to users on other social media platforms.
As a result, leveraging Pinterest for marketing purposes can yield a range of benefits, including heightened brand recognition, increased website traffic, lead generation, and a boost in sales for your business. However, it’s imperative to recognize that Pinterest marketing may not be universally effective or appropriate for every business or industry.
Prior to investing in Pinterest marketing, conducting thorough research and analysis is essential to ascertain whether your target audience is active on the platform and whether it aligns with your objectives.
Creating content that adheres to the platform’s stylistic conventions and caters to user preferences is equally vital. High-quality and engaging content is the key to making your Pinterest marketing efforts a success, as it ensures that your brand resonates with the Pinterest community and effectively captures their attention and interest.
Pinterest advertising is a multifaceted platform with abundant opportunities and advantages for businesses, regardless of their size or industry. However, tapping into these benefits necessitates a solid grasp of how the platform operates and the associated costs.
In this blog post, we’ve delved into the realm of Pinterest advertising, elucidating its workings and the cost dynamics in 2023. We’ve also explored various factors that influence Pinterest advertising costs, including the auction-based advertising system, versatile targeting options, ad formats, and ad placements.
To help you navigate this landscape effectively, we’ve provided insights on setting a practical budget, estimating potential expenses based on your objectives, optimizing your ad spending, and keeping abreast of the latest trends in Pinterest advertising.
Our aim has been to furnish you with valuable information and guidance, facilitating a better understanding of Pinterest advertising. If you have any inquiries or feedback, don’t hesitate to reach out. We’re eager to hear from you and assist in any way we can.