This will be my first contributing post on Startup Addict, so I thought it would be fitting to talk about a social media startup that has just graced its way into my daily routine: Pinbooster.
This brand new startup went public just a few days ago and is looking to make a big impact on the Pinterest network, notably using the Pay-Per-Tweet model to cash in on influential Pinterest users. Put simply, brands can now sponsor/promote their pins by paying influential pinners to share their content.
It’s a brilliant idea considering the virility of image-based content and could shape entire advertising campaigns in the near future. Getting set up as an advertiser or paid pinner is beautifully simple, since all you need is a Pinterest account.
If you’re there as a pinner, Pinbooster will analyze your influence based on their own algorithm and determine what you should charge advertisers per each pin (with the price starting at $1). So far, one of the most impressive payouts has been the sum of $1,000 for a re-pin, but small-time pinterest users will probably expect sums much lower.
One of the main reasons I am excited about this startup is because of the impressive results from beta testing, which are showing that this new tool is on the path to being extremely useful in getting Pinterest on the marketing map.
I’ve written on my own blog about how inherent obstacles among the Pinterest experience can inhibit companies from taking huge risks with the platform, as we see with Volvo’s “JoyRide Campaign”. That said, a Pay-per-pin model can help brands break through the most challenging obstacle on Pinterest, which is building a huge following quickly and driving traffic.
Now, there is still a bit of controversy surrounding whether or not Pinterest actually has high conversion rates, but what we do know is that people spend more on Pinterest according to this RichRelevance study. When you consider just how engaged users are with Pinterest content, the floodgates could be opened for advertisers looking to find a cheap way to channel their content through something besides a Facebook page.
Of course, I wouldn’t be very fair if I didn’t address some issues I foresee with the service. One main complaint we can expect is that this will downgrade the quality of pins tremendously, which is a huge draw for Pinterest. Another potential problem is that advertisers could be disproportionate to pinners, as you would reasonably expect. Plenty of people will be willing to sign up and await their angel investment, but how many advertisers can we really expect to jump on board?
At any rate, I expect this project to at least build a model of hope for marketing on Pinterest, and we have to start somewhere. Let me know what you think in the comments, and be sure to visit the site here and see if you have what it takes to be a Pinbooster success story.
