Oracle helps Pinterest measure offline sales
June 7, 2016 12:24 PM
Pinterest today announced it is working with Oracle Corp.’s Oracle Data Cloud to measure how its promoted pin ads—the ads that let a brand pay to ensure a certain number of consumers see a pin—impact offline sales. Oracle Data Cloud is the parent of a number of data platforms, including AddThis, BlueKai, Crosswise and Datalogix.
In announcing the relationship, Pinterest highlighted a new Oracle study that found consumer packaged goods manufacturers’ promoted pins drove roughly five times more incremental in-store sales per impression than other campaigns measured by the Oracle Data Cloud, which covers a broad swath of marketing channels including other social networks’ ads, as well as ads placed by programmatic ad vendors. The study examined 26 consumer packaged goods campaigns that ran on the platform from 2014’s third quarter to 2015’s third quarter.
The study also found that 40% of Pinterest users earn more than $100,000 each and, compared with the national average, consumer packaged goods brands are three times more likely to reach existing customers on Pinterest than elsewhere online. That’s important, Pinterest says, because those customers spent 16% more than other shoppers.
Consumers who engage with a promoted pin are 12% more likely to buy a brand’s products. And, even beyond those sales, when consumers repin a promoted pin they’re distributing content, which is highly valuable, Angela Reynar, Pinterest head of advertising measurement, writes in a blog post. The study finds that those repinned promoted pins double the incremental sales lift of paid impressions by expanding the reach of the ads.
“These results prove that there’s a powerful connection between behavior on Pinterest and behavior offline, but it’s only the beginning,” Reynar writes.
Oracle conducted the study by examining the consumers exposed to a Pinterest ad in terms of their past purchase behavior, demographics and behavior on Pinterest. It used that information to create a control group of statistically identical households not reached by that Pinterest campaign.
Then, to isolate the impact of both paid and earned media—which is when a Pinterest user sees a pin that the brand didn’t pay to have appear in a user’s feed either during the campaign or within 30 days of the campaign closing—the study ran analyses across two overlapping groups. One group included consumers who saw paid ads and may have seen earned pins; the other group included consumers who only saw earned pins.
While the initial study focused on consumer packaged goods brands, Oracle will expand the scope of its measurement to other retailers, a Pinterest spokeswoman says.