Pinterest Inc. (NYSE:PINS) is piloting a new co-sales and revenue sharing advertising model on the platform for publishers featuring video ads. However, unlike earlier video campaigns on the social media platform, this new model will help create videos in customized styles.
Tastemade piloting new Model with Fritos
Most importantly, the model relies on first-party data from Pinterest about users and insights on trending brands and topics. This will help in determining the content that will do well on the social media platform. Publishers will then create video content based on the data and insights provided.
The model is currently in testing phase, with Tastemade being the first publisher signing on, and Fritos is funding the pilot test. Fritos’ comprises of numerous recipe videos that include salty and sweet Frito cookies and Frito taco. The videos feature a “hand-in-pan” style, which is common with Tastemade, and the Fritos and Tastemade logos are placed at the bottom corner.
Pinterest and Tastemade have not disclosed what the revenue split will be. However, they indicated that commission rates will be competitive with current industry norms where the publisher gets less relative to the platform. Currently, Tastemade has over 87 million monthly viewers on the platform, with more than 2 billion views on pinned videos.
Pinterest to benefit from advertisers’ boycott of Facebook
The social media platform was the third most popular platform in the US last year, according to eMarketer. It surpassed Snapchat, with over 86 million users relative to Snapchat’s 83.1 million. Last year Pinterest generated $1 billion in revenue, and expects to hit $1.5 billion in 2020. And with the boycott on Facebook Inc. (NASDAQ:FB) gaining momentum, the company is set to benefit.
Facebook is shutting Pinterest rival app Hobbi and TikTok rival app Lasso from July 10. The social media giant is shutting Hobbi barely months after it was launched in Apple App Store in February. Hobbi was an app designed to let users document, organize, and share their hobbies. However, adoption was underwhelming with on 7,000 downloads to date.