Pinterest is one of my favorite social media sites for a variety of reasons – it’s visually stimulating, easy to use and makes me feel like I have the ability to be domestic, even if I never actually make the recipes or DIY home decor ideas that I pin. I’ve always wondered, though, how does Pinterest make money and how does the contact to customer ratio compare to other social media platforms like Twitter and Facebook. Well, here’s the answer.
Following Twitter’s lead, Pinterest is planning to roll out a “Buy” button that would let users purchase pinned items without leaving the site or app. Ad Age says they’ll roll it out as early as this year. They recently acquired ad tech firm, Kosei, which they hope will allow them to better match promoted pins with appropriate users.
Earlier this week, they began offering App Pins, which allows users to download apps right from Pinterest with a click of the “install” button.
This could be a huge opportunity for retailers, considering a whopping 71% of the site’s 72.5 million visitors in the US are women (though, they are putting a lot of effort into diversifying that audience). Couple that statistic with the recent study by Deloitte which revealed that women impact up to 85 percent of purchasing decisions; or approximately $4.3 trillion of total U.S. consumer spending of $5.9 trillion, making women the largest single economic force not just in the United States, but in the world.