Why are we so concerned about a report by LL Social that popular online pinboard Pinterest is making money off our interactions when Facebook has been doing it for years—but with our much more personal information?
Is it because more people understand affiliate marketing—and have experienced the spammy nature of its content? Or is it that most people just don’t understand how Facebook makes money from them?
The interesting or perhaps biggest risk I see Pinterest facing is in the relationships it will now have (or perhaps, not have) with brands. The launch of Google + brand Pages saw its biggest growth spurt in users since it launched—as brands scrambled to create their own space—but what will brands now think about the affiliate relationship with Pinterest content?
Whether brands are using Pinterest in any kind of “subversive” manner (e.g., creating profiles called their company name for example and collating customer/product-related pins), even now they must be thinking twice that, potentially, content they are creating for their own customers is funding another business, or worse still, is actually costing them money through the affiliate links Pinterest is adding.
Tough times are ahead on the face of it, but this could have a simple solution: search-indexed premium brand pages with customization capabilities would more than offset the sparse revenues that affiliate marketing would generate.
What are your thoughts?
Tags: customer experience, Marketing, Pinterest, Strategy and Tactics
Great (timely) article! I think brands are diving into the world of Pinterest at such a rapid pace that the idea of a customized brand pinterest page seems highly unlikely right now. But wouldn’t that be great! My company’s page is B2B so I don’t really see Pinterest as a threat.
Interesting idea about Facebook. This only way I don’t like social nets.
I’ve only recently discovered Pinterest myself and am reluctant to spend any more time learning something new to market my biz. For now, it’s a fun diversion when I have the time (and after I’ve checked in to my Facebook and Twitter accounts). It’s bad enough that now we’ve got Google+ to learn. I suppose resistance is futile, but I’m not an early adopter, so I’ll wait and see.
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I really like this article. Pinterest really hasn’t appealed to me very much. In my NewhouseSM4 class with DR4WARD we will no doubt have to experiment with it but that is as far as I may go with it. I have enough Social Media things to deal with right now like LinkedIn, Facebook, Twitter, G+ and Google Reader.
Just wanted to let you know I am studying Social Media Theory & Practice with @dr4ward at @NewhouseSU, I have subscribed to your blog, I look forward to your excellent stories in the future. #NewhouseSM4