Despite digital advertising soaring 12% in 2020, Pinterest has decided to move some eggs to another basket — influencers!
Pinterest (NYSE: PINS) has never associated with ‘influencer culture, and perhaps for that very reason, it has been one of the least controversial social platforms.
But this could all soon change…
Pinterest goes out of left field!
Pivoting can make or break a company, but Pinterest is not just ‘any company’. For years now it has built an image of itself as the ‘good’ social media platform; a buoy of light in an otherwise murky ocean filled with Twitters and Facebooks.
Yesterday, however, the company announced that it will soon be launching a “Creator Fund” to pay eight influencers who come from under-represented backgrounds to create content for the platform, with plans to expand in the future. This move follows in the footsteps of TikTok and Snapchat, who have both launched similar initiatives in recent years as a lure for influencers who they can provide with direct financial support.
Pinterest’s fund will provide $500,000 in cash, and is going the extra mile to ensure that its positive company culture follows it down this often controversial path. To ensure that its new influencer model doesn’t stray, it has developed the “Creator Code”. This new code will apply to all Pinterest influencers — not just those receiving funds — and ensures that they agree to a set of guidelines that include fact-checking and creating an inclusive environment.
It’s a big step for the business and comes in light of a recent report commissioned by the Interactive Advertising Bureau and conducted by PwC, which highlighted that digital ad spend in 2020 soared 12.2%. This shows that Pinterest’s primary revenue stream has never been more important or lucrative. Its new lure for influencers should result in more users and interaction and hopefully will help expand on 2020’s 48% revenue growth and 37% increase in monthly active users.
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