Pinterest, a two-year-old, US-based social media online platform, is swiftly catching up to its larger rivals in market share. The newcomer is bringing a fresh look to social media compared to eight-year-old Facebook and six-year-old Twitter – at least in the eyes of its growing band of devotees.
The younger Pinterest last February set a record for fastest site to reach 10 million unique visitors, and is growing at a rate more than triple either Twitter or Facebook.
The newer site provides retailers with what it claims is a unique marketing platform compared to Facebook and Twitter, and that seems to be borne out when measured by both retail website traffic redirects and the average amount of money a Pinterest user spends per purchase.
Although Pinterest occupies a relatively low market share at this point, growth trends project that it will soon compete with Facebook and Twitter for market dominance.
The younger site could also change the face of social media and e-retail in the process.
Pinterest users follow their favourite retailers more frequently than on Facebook or Twitter, according to some online researchers.
On average, users reportedly follow 9.3 retail companies on Pinterest, compared to 8.5 on Twitter and 6.9 on Facebook.
A more significant difference is in the interaction between user and retailer; when a Pinterest user makes a purchase from a link, the average amount spent is US$80, compared to US$40 on Facebook.
In the US, 80% of Pinterest users are women, with the majority in the 35 to 44 age group demographic; in the UK, only 44% of users are women, and the 25 to 34 age group is more heavily represented.
The discrepancy in appeal between the US and UK suggests, however, that the variation is largely coincidental; as its usage grows, demographic groups may eventually embrace it more evenly, as was seen with the expansion of Facebook membership.
When asked why they follow retailers on social media sites, the number one reason given by 51% of respondents was for seeing deals and promotions, slightly down from 56% the year before.
Some 43% of users look for product information, while 36% want to post and read comments about merchandise or services and 34% are looking for information on events.
Huge jump in business
Pinterest has seen a monumental 4,000% growth over the past year, with plans to continue expanding, as well as develop foreign language versions of the site to push its global reach.
What makes Pinterest interesting, however, is how well-suited it is as a social-media marketplace to connect consumers to retailers.
Pinterest users follow retailers by, "pinning" items they like, and following people with similar tastes. The site sees itself as way of "organising e-commerce into a collection of personalised shopping malls".
And as the numbers show from research firm comScore's study, Pinterest's format advantages have resulted in higher consumer spending.
Over 25% of those who buy goods online do so after seeing them on an image sharing site. So Pinterest envisages itself as more than a platform for consumers to research goods and services.
It tailors the shopping experience to each individual user, trying to whet their retail appetite with new images from retailers, brands and friends whose tastes they already like.
The consumer is inside a virtual shopping mall filled only with the stores they like; the site also streamlines this shopping experience by placing a broad range of products into one, fun-orientated site.
Online retailers can organise their products into different "pages", with each page appealing to a different demographic.
Each Pinterest "pin board" gives sellers an opportunity to display a selected group of images, weaving individual products into a general style or theme attractive to its targeted audience.
As in the case of Facebook and Twitter, brands take a pro-active role in creating and monitoring their press on the social media site.
Although Pinterest does not yet boost a massive membership to compare with those of Facebook or Twitter, it appears to be well-suited to e-retailing.
The view of some commentators is that just having a Pinterest page gives online retailers an edge. It allows them to draw inspiration from other pages that have many followers and quality content.
Most important is to be creative. Simply pinning product photos to a Pinterest board may not yield the same benefits of producing engaging content.
The more general appeal a board has the more interest in the site. For example, Isabelle K. Jewelry, a jewellery retailer, has a board entitled "Icons". It pictures famous and beautiful women from past and present generations, all wearing at least one prominent piece of jewellery – and drawing general as well as shopping interest to the site.
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