AdExchanger Talks: Pitching Performance with Pinterest’s CRO
Episode Release Date: October 15, 2024
Host: Alison Schiff
Guest: Bill Watkins, Chief Revenue Officer (CRO) of Pinterest

1. Introduction

Alison Schiff welcomes listeners to the latest episode of AdExchanger Talks, spotlighting trends and developments in advertising and marketing technology. This episode features an insightful conversation with Bill Watkins, Pinterest's CRO, who delves into Pinterest's strides in performance marketing and its unique positioning in the ad tech landscape.

Notable Quote:

"Pinterest is out there wooing performance budgets and evangelizing the need for more positivity and less toxicity in social media."
— Alison Schiff [00:02:03]

2. Evolution of Pinterest's Perception

Bill Watkins reflects on his 11-year tenure at Pinterest, highlighting how the platform has transitioned from an underdog to a serious contender in the performance marketing arena. He emphasizes Pinterest's increased investment in lower-funnel performance products and the resultant shift in advertiser perceptions.

Notable Quotes:

"Our advertisers globally are seeing Pinterest get serious by way of investing in advertising products, in particular lower funnel performance products, more so than ever before."
— Bill Watkins [00:03:46]

"We've transformed our monetization from what was 2/3 upper funnel just a few years ago to now 2/3 in the lower funnel."
— Bill Watkins [00:07:04]

3. Performance Plus: AI-Powered Performance Marketing

The conversation shifts to Pinterest's flagship AI-driven advertising suite, Performance Plus. Watkins explains the rationale behind its naming and its role in enhancing advertiser performance through advanced automation and AI tools tailored specifically for Pinterest's unique inventory.

Notable Quotes:

"It's driving better performance for advertisers. Hence, it's Pinterest Performance Plus."
— Bill Watkins [00:08:56]

"Our end to end AI driven solution which we call Pinterest Performance Plus, these are driving significant results."
— Bill Watkins [00:07:04]

4. Balancing Automation and Control for Advertisers

Alison and Bill discuss the delicate balance between leveraging AI-driven automation and maintaining advertiser control. Pinterest's approach ensures that while automation handles optimization, advertisers retain the flexibility to customize their campaigns according to specific goals.

Notable Quotes:

"They do not like an opaque system or lack of controls, rather they wanted controls."
— Bill Watkins [00:28:46]

"With Performance plus across bids and budgets, targeting and creative, you can adopt the entire bundle and let the system do what the system is going to do or you can adopt feature by feature."
— Bill Watkins [00:28:46]

5. Shopping and Commerce on Pinterest

The discussion highlights Pinterest's evolution into a robust shopping platform. Watkins shares success stories from major brands and details new features like promotional ads aimed at enhancing the shopping experience, especially during high-traffic seasons like the holidays.

Notable Quotes:

"A majority of our Pinners are coming to shop."
— Bill Watkins [00:11:05]

"We're now rolling out promotional ads or deal ads on Pinterest and we just see a 12% increase in conversions when using deal ads."
— Bill Watkins [00:33:22]

6. Pinterest's Commitment to Positivity and Mental Health

Bill Watkins passionately discusses Pinterest's initiative to foster a positive and inclusive online environment. He references Pinterest's policies, such as making the platform private for users under 16, and emphasizes the company's dedication to mental health and combating toxicity in social media.

Notable Quotes:

"We're aiming to prove to our industry that you can engineer for positive mental health and have a thriving business."
— Bill Watkins [00:18:55]

"We want to build a more positive Internet... engineer our experiences for positivity and inspiration."
— Bill Watkins [00:19:24]

7. Pinterest’s Market Position and Investor Confidence

Alison references a Bloomberg headline lauding Pinterest as a "new Wall Street favorite" and an "underappreciated bargain." Watkins attributes this growing investor confidence to Pinterest's enduring strategy, robust performance metrics, and successful international expansion.

Notable Quotes:

"We are focused on our long term enduring strategy."
— Bill Watkins [00:40:49]

"We're proving out that not only can we drive good results, that we can differentiate ourselves when we do it."
— Bill Watkins [00:40:49]

8. Pinterest Presents Event Highlights

The episode touches on the recent Pinterest Presents event, highlighting its engaging format and the collaboration with celebrities like Ilana Glazer. Watkins shares anecdotes from the event, illustrating Pinterest's creative approach to showcasing new products and initiatives.

Notable Quotes:

"We are so fortunate to have just amazing folks come and join us... I can take it."
— Bill Watkins [00:43:20]

9. Conclusion

Alison wraps up the conversation, appreciating Bill Watkins' insights into Pinterest's strategic advancements in performance marketing and its unwavering commitment to creating a positive digital space. The episode underscores Pinterest's unique blend of inspiration and commerce, positioning it as a formidable player in the ad tech industry.

Notable Quote:

"We're just getting going."
— Bill Watkins [00:36:19]

Key Takeaways:

• Strategic Investment: Pinterest has significantly ramped up its investment in performance marketing tools, particularly focusing on lower-funnel advertising products.

• AI and Automation: The Performance Plus suite leverages AI to enhance ad performance while ensuring advertisers retain control over their campaigns.

• Shopping Integration: Pinterest has evolved into a major shopping platform, introducing features that drive higher conversions and cater to cost-conscious consumers.

• Positive Platform: Commitment to creating a safe, inclusive, and positive environment sets Pinterest apart in the often-toxic landscape of social media.

• Investor Confidence: Strong performance metrics and strategic initiatives have positioned Pinterest as an attractive option for investors, earning it accolades as a market favorite.

Additional Notes:

• Performance Metrics: Pinterest boasts impressive statistics, including a 12% increase in conversions from deal ads and a 10% improvement in CPA through Performance Plus.

• User Engagement: With 522 million monthly users and a 12% year-over-year growth, Pinterest continues to enhance user engagement, especially among Gen Z.

• Global Expansion: Pinterest's expansion into 30 new markets underscores its commitment to international growth and capturing a broader audience.

This episode of AdExchanger Talks offers a comprehensive overview of Pinterest's innovative approaches to performance marketing, its dedication to fostering a positive online community, and its strategic moves to secure a prominent position in the competitive ad tech landscape.