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Originally published Wednesday, May 7, 2014 at 7:53 PM

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Retailers realize selling power of social-media sites

The interest in Pinterest comes as retailers increasingly realize the power of social-media sites to steer business their way. They’ve found while smartphone-toting Americans are spending time opining and posting photos online, they also can be encouraged to spend money.


The Associated Press

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NEW YORK — Target, Nordstrom and other big chains are pinning their hopes of attracting shoppers on social media.

Retailers increasingly are using Pinterest, a social-media site that allows users to create collections of photos, articles, recipes, videos and other images that are called “pins,” to draw business to their own sites.

Shoes, handbags and other items on Pinterest are being prominently displayed in Nordstrom stores with special tags. Target, the nation’s No. 2 discounter, is creating exclusive party-planning collections with top Pinterest users, or “pinners.” And Caribou created a coffee blend inspired by the coffee chain’s Pinterest fans.

The interest in Pinterest comes as retailers increasingly realize the power of social-media sites to steer business their way. They’ve found while smartphone-toting Americans are spending time opining and posting photos online, they also can be encouraged to spend money.

A recent report from software-maker Adobe found that year over year, revenue per visit, or revenue from sending users to retail sites through ads, social-media pages or brand posts, is 65 cents at Pinterest, 62 cents at Twitter and $1.24 at Facebook.

Relative newbie

Founded in 2009, Pinterest is a relative newbie in social media, but its unique interface sets it apart as a marketing tool for retailers. Users can bookmark images they find on the Web under topics they create. When users pin an image, Pinterest displays any picture that is associated with it. The effect is similar to a bulletin board: Pins are organized under topics called “boards.” Users can follow other people’s boards.

The site has become popular among vacationers, designers, hobbyists and do-it-yourselfers. For them, surfing the site can be like falling down a rabbit hole: A search for “red shoes,” for instance, could turn up thousands of pins. The site also can be slightly addictive: Log on for minutes and some users wind up spending hours trawling through boards.

“Pinners” shopping

As a result, Pinterest is the fourth-largest social-media site, with 58.2 million unique users in March 2014, according to research firm comScore. It’s behind only Facebook with 198.8 million users, Twitter with 114.3 million users and LinkedIn with 71.7 million users, comScore reports.

But Pinterest might be more valuable to retailers than some of its rivals. Data show that Pinterest users shop more when they follow links to retailers’ websites. When “pinners” buy, the average order value is $199.16, compared with $92.27 for Facebook and $58.02 for Twitter, according to data-analytics company RichRelevance.

Retailers have noticed shoppers’ affinity for Pinterest. Caribou Coffee, which has about 3,500 Pinterest followers, last year asked fans to share what inspires them with the hashtag #caribouinspires. Then, it created a blend of coffee based on the submissions called “Real Inspiration.”

Home-improvement chain Lowe’s, which has 3.5 million followers, uses Pinterest to post project ideas using products from Lowe’s on a Pinterest board called “The Finishing Touch.”

And Nordstrom, which has 4.4 million followers, used data about top pinned items to create in-store displays. Executives have noticed certain items tend to go viral, such as Mason jars and a crochet swimsuit by Robin Piccone, which “seems to have a never-ending shelf life” on Pinterest, says Bryan Galipeau, Nordstrom’s social-media manager.

“The unique thing about Pinterest from a retailer’s perspective is it’s really about the products,” he says.

For its part, Target, which has 152,000 Pinterest followers, launched a beta website in December called Target Awesome Shop that highlights the most popular Target items pinned on Pinterest. The site now offers 1,100 items, ranging from an inflatable movie screen to a tufted love seat.

At first Pinterest worked with retailers for free. But recently the site has tested services that would allow it to charge for such things as promoted pins, which would are similar to ads.

eMarketer analyst Debra Aho Williamson said Pinterest’s business is going in the right direction since promoted items on Facebook and Twitter have conditioned social-media users for ad intrusion.

“I think if Pinterest ... makes sure ads fit in with what people are doing on Pinterest, I don’t think they’ll face a backlash,” she said.



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