Pinterest Partners with Amazon Ads for Shoppable Contents

Pinterest Partners with Amazon Ads for Shoppable Contents

Pinterest has signed a multiyear deal with Amazon Ads to enhance the platform’s offering of relevant products and brands. This marks Amazon’s status as Pinterest’s first third-party advertising partner. The partnership aims to create more shoppable content and comes after the increasing popularity of video-based platforms like TikTok and Reels pushed the social media to update its image pinboard. The platform introduced Idea Pins that prioritize video content and placed greater emphasis on content created by its users.

Pinterest Deal with Amazon Ads to Expand Shoppable Content

The partnership aligns with PYMNTS research from the end of last year, which predicted that online sellers would prioritize social media channels in 2023. The research revealed that about 47.9% of online sellers intend to rely more on platforms such as Instagram and TikTok for sales and marketing activities.

The company’s creator-focused initiatives were scaled back prior to the disappointing revenue results in the last quarter. In contrast, Amazon’s digital advertising division experienced a 19% increase in revenue to reach $11.6 billion.

The partnership with Amazon could pave the way for a smoother buying process for consumers. Amazon shoppers may enjoy a more seamless experience, as they will not have to spend time completing forms, as the company typically stores their payment details. Whenever users encounter an Amazon advertisement on Pinterest, they will be directed straight to the Amazon platform to finalize their purchase.

According to the company, the integration of Amazon Ads will occur over several quarters, commencing later this year. The company is uncertain about the locations where the ads will be visible to users. Moreover, it is not providing any short-term predictions regarding the potential revenue impact of the partnership. Pinterest has indicated that the effects of the collaboration will not be substantial until next year.

The Company’s Further Investment in Shopping Tech

As we reported on, Pinterest has also revealed that it would be investing further in its shopping tech to retain merchants. Bill Watkins, the chief revenue officer of the social media platform, stated that the company is making investments in technology that “drive the best shopping experience fulfilled by merchants that are already on our platform.”

Pinterest users are coming to the platform with a specific purpose and intent, according to Watkins. The company is investing in computer vision, machine learning, and artificial intelligence to personalize the shopping experience and facilitate consumer behaviour. Shopping ad catalogs account for Pinterest’s fastest-growing revenue stream.

Pinterest has abandoned its plans to implement a direct checkout solution and opted to use mobile deep linking to directly send users to the checkout function within the merchant’s app. In the previous month, the company revealed its plan to incorporate shopping features into Shuffles, a collage-making app that stands on its own.

In conclusion, the partnership between Pinterest and Amazon aims to create a more seamless and convenient buying process for consumers. Pinterest is investing in technology to personalize the shopping experience and retain merchants. The collaboration is expected to take several quarters to fully integrate, and its effects on revenue will not be substantial until next year.

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