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Marketing start-up Ahalogy pins its future on Pinterest


Search for oat-based recipes on visual bookmarking site Pinterest, and it will bring up a screen of oatmeal porn.


Images of gooey oats covered in strawberries, chocolate chips, drizzled with glistening honey take over the screen.


Click on the top results and the majority probably will have something to do with Quaker.


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The images, or “Pins,” as they’re referred to on Pinterest, might redirect to a recipe on Quaker’s site. They might go to a food blog post sponsored by Quaker. Or, subtly, in the background of an image, there might be a big tub of Quaker oats, hovering behind an enticing bowl of oatmeal.


Coincidence? Not exactly.


Quaker’s ubiquity in those oat-based search results is largely the effort of Ahalogy, a marketing start-up that specializes in Pinterest. The company exists to help brands like Quaker, Kraft and Toms shoes get their products in front of Pinterest users, while also not annoying anyone.


Unobtrusive advertising? It’s a tough one. That’s why Ahalogy co-founder Bob Gilbreath has created a company of nearly 50 people working exclusively on Pinterest. Nothing else.


Some marketers might call Gilbreath and Ahalogy crazy. He would say his company is ahead of the curve.


Some marketers might say he’s taking too big a risk. He would say Ahalogy is primed for the reward.


And some might ask: What on Earth is Pinterest, let alone a Pinterest-focused marketing firm? Gilbreath would laugh, sigh a little, then laugh again.


Pinterest is an image-based search engine. Type in anything you want — 2007 Ferraris, knee-high boots, Thanksgiving ideas and, yes, oatmeal recipes — and it will pull up hundreds of pins that people have uploaded. Some might lead to other websites. Some might just be images. If you want to save a pin for later, you can click the “Pin it” button, which saves it to a board. It’s like Google and scrapbooking rolled into one.


And Ahalogy believes that there’s big money to be made from it. The Cincinnati company has raised $7 million in funding from investors such as Hyde Park Ventures and CincyTech.


It doesn’t do other forms of marketing. There’s no Facebook, Twitter or Snapchat team. There’s no backup plan. If Pinterest ceased to exist, Ahalogy wouldn’t exist. At the same time, it does not belong to, nor is it part of Pinterest.


How’s that for an existential threat?


Gilbreath laughs. Maybe he is crazy. He’s pretty sure he’s not.


“I can see this movie playing,” he said, spinning his index finger in the air like film going through a projector; someone peering into Ahalogy’s office could have easily mistaken his gesture for “crazy,” though. “I’ve seen the same model repeat again and again.”


A marketing veteran who got his start at Procter & Gamble, platform skepticism isn’t new to Gilbreath. He saw it with the Web in the 1990s, when television advertising was king and “Internet” marketing was thought to be a joke.


He saw it with the rise of Facebook, when marketers were hesitant to figure out social media because they thought it was a fad.


And now he’s seeing it with Pinterest, which recently cracked 100 million users.


But Gilbreath knows there is more to it than being first.


Early players in the Facebook game, like marketing firms Buddy Media and Wildfire, were successful (and later acquired for hundreds of millions of dollars by Salesforce and Google respectively) because they bet on the right horse. Being first to, say, Bebo or the now-defunct Piczo wouldn’t have helped them much.


A large part of Ahalogy’s confidence comes from the belief that, in addition to being first, the firm is betting on the right platform. And, judging by San Francisco-based Pinterest’s $11-billion valuation, they’re not alone in thinking that.


“In general, I would say it’s not a good idea for a company to focus on one platform,” said Betsy Sigman, a professor of social media and technology at Georgetown University.


“But I don’t think this is risky for [Ahalogy] because Pinterest is an unusual social media company,” she said. “It’s a premium company in ways, because people go there looking for something; something to do, something to buy.”


Pinterest knows this, which is why it created its Marketing Developer Partners program (of which Ahalogy is a member) to point brands in the direction of marketing firms that “get” Pinterest.


The platform is about discovery and the future, said Pinterest’s head of marketing developer partnerships, Michael Akkerman, and “Ahalogy produces authentic and compelling content that’s beneficial [i.e., not annoying] to both the Pinner and the brand.”


And Pinterest really is a game changer, said Raman Sehgal, Ahalogy’s vice president of marketing.


Ahalogy’s 2015 media consumption study found that 89% of people who use Pinterest daily have bought something they saw on the platform. And 85% of daily users also said they open Pinterest on their phones and look at items they’ve pinned when they’re in a bricks-and-mortar store (Buying oats? Try Quaker!).


More than half of the platform’s most active users said they have not seen or noticed ads — “promoted pins,” as they’re called — on Pinterest. And those who have seen them largely don’t mind.


“That’s unheard-of,” Sehgal said. After all, people hate ads. A 2014 report from PageFair and Adobe found that around 144 million people in the world use ad blockers. Undocumented millions more probably wish they did.


But on Pinterest, it’s a different story.


“It’s more about the inspiration,” said Kim Johnson, an early Ahalogy hire on the client success team. “People use Pinterest like they’re curating a personal magazine, so they’ll save things from around the Web onto their boards.”


Around half of Ahalogy’s business is in the software it sells that helps brands optimize their images, track how certain pins are performing and schedule pins to publish at times of high traffic.


This part isn’t unique. Other companies have created similar analytical tools, and many digital agencies also offer Pinterest marketing.


Toni Box, senior director of social media and content services at agency PM Digital, said that for some brands, it just doesn’t make sense to invest heavily in Pinterest.




“It’s really about having that broader view,” said Box, whose agency’s work includes Pinterest and email marketing. “Working with an agency like ours, you’re going to have knowledge from all different verticals instead of just one.”


Ahalogy is so far the only firm to offer a singular service: to help a company “win” at Pinterest.


“Say Kraft [one of Ahalogy’s clients] wants to advertise its cream cheese on Pinterest,” Johnson said. “Putting a picture of a tub of cream cheese on Pinterest isn’t going to help.”


“Lots of people might see it,” Sehgal added. “But then what?”


“So maybe we’d do a dip recipe pin, because that’s useful, that’s something people would actually save,” Johnson said. “And when you click through, it’ll take you to a recipe on Kraft’s site.”


“Or we’ll find a blogger who has already created a dip recipe that has gotten really popular on Pinterest, and see if Kraft can sponsor it.”


Ahalogy has 40 clients, including Kraft, Kellogg’s Town House crackers, Toms and Quaker. For each brand, it will create as many as five to 10 pins per day. Its designers will try them in every variation: a pin with text, a pin without text, swapping out images, tagging them differently, adding a logo, removing a logo.


The company’s early results have been promising, driving product sales and raising brand awareness unseen on platforms such as Twitter and Facebook. More telling is the fact that many of the big brands that signed up with Ahalogy when it launched in 2012 have stuck with it.


“They’ve been an extremely valuable strategic partner,” said Zachary Wyer, Kellogg’s brand manager on Town House Crackers, which has worked with Ahalogy for more than two years and has seen most of its user growth and engagement happen on Pinterest.


“The cracker business is more than 85 years old, and even recently consumers still think of us as a formal, oval cracker,” he said. “We’re hoping to change that perception of the business, and we think Ahalogy is the perfect partner for it. They have the savvy on the platform few agencies do. That’s part of the reason we chose them.”


tracey.lien@latimes.com


Twitter: @traceylien


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Marketing start-up Ahalogy pins its future on Pinterest

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Right to reply: Pinterest marketing API gets brands onboard early

This week, Pinterest has launched a marketing developer programme, with 10 social publishing providers. Gideon Lask, CEO at Buyapowa argues why providing access to its API early in the life cycle of Pinterest ads is a smart move to boost advertiser confidence.


Following fast on the never-ending stream of announcements of enhancements to advertising options on social networks, Pinterest has just announced the Marketer Development Program, allowing selected partner companies access to its API. This is a logical move, as encouraging companies such as Shoutlet, Buffer and Sprinklr to build enterprise level tools for the creation and scheduling of ads, should help provide brands with the scalability and accountability needed to invest large sums on the platform.


This is similar to the manner in which companies like Adknowledge, TBG and Marin provide the tools to scale Facebook ad spend. Without these kind of tools it is doubtful that brands would be confident in spending the large sums Pinterest is banking on earning from monetising its audience.
This is further proof that a digital technology is only really capable of achieving its potential when marketers have the right tools available. We have seen a similar pattern of adoption across all forms of digital advertising including paid search, email and affiliate marketing. Also, ‘refer-a-friend marketing’, where finally the right tools are becoming available to allow social customer-get-customer to explode.


Pinterest is making a smart move by providing access to its API early in the life cycle of the development of Pinterest ads to try and accelerate the development of the tools brands need. In addition, by offering access to a fairly diverse selection of hand picked partners, it is not putting all its eggs in one basket as well as letting its partners find the right format for advertisers.


By Gideon Lask
CEO
Buyapowa

http://www.buyapowa.com/



Right to reply: Pinterest marketing API gets brands onboard early

Pinterest Launches Marketing Developer Partners Program

PinterestMarketingDevPartners


Similar to Facebook’s Marketing Partners, Pinterest this week announced the Marketing Developer Partners program, a way to help businesses partner with marketing companies for greater success on the platform.


The launch partners are: Ahalogy, Buffer, CuralateExpion, Newscred, Percolate, Shoutlet, Spredfast, Sprinklr and Tailwind. These companies have access to Pinterest’s Content Publishing Application Programming Interface (API). Pinterest is also opening up its Ads API in the U.S., and there are a limited amount of groups in beta for this.


Pinterest’s Jyri Kidwell blogged about the Marketing Developer Partners program:



People use Pinterest to plan their future, which is why content from businesses is essential in helping people discover the creative things they want to do next. With the right Pin, you can inspire someone to take action, whether that’s saving an idea for later or making a purchase from your website.


To help businesses establish a more valuable presence on Pinterest, we’ve launched Marketing Developer Partners (MDP), a program that helps businesses optimize and scale their Pinterest marketing and improves Pinterest for Pinners.


The MDP is made up of a limited, carefully selected group of developer partners who meet the needs of existing businesses on Pinterest and align with our core value of putting Pinners first. We’re committed to helping these developers build custom tools and services on our APIs so businesses can use Pinterest more effectively.



Readers: What do you think of Pinterest’s MDP program?



Pinterest Launches Marketing Developer Partners Program

Why Pinterest Ads Are Going to Be Great

Pinterest has already proven successful in driving sales for online retailers, particularly for women. The mostly (80%) female social network has a really smooth flow to a point of sale, which makes it uniquely valuable to marketers. In the new year, Pinterest announced its intention to roll out their advertising platform to the public, and all indications would suggest it will be a great success.


Firstly, as I said, Pinterest boards already convert well to sales. Ads will therefore feel very similar to users. Although there will likely be a design element identifying promoted pins, the interaction with images linked to sites will be very similar. If you think about how starkly ads and posts on Facebook differ, this is a non-trivial difference.


Secondly, Pinterest is a platform where people post about their aspirations, including things they would like to buy. A comparison that I think is on point is: if you’ve bought a new piece of clothing, you Instagram it; if you see something online that you love, you Pin it. This information is incredibly valuable to marketers, making it possible to target an audience that has actively expressed an interest in purchasing their product. No other platform is this powerful: Facebook, for example, can at best offer an audience of people interested in your product, which does not necessarily mean they want to buy it.


Finally, among women Pinterest has reached a percentage of the US market that outshines all but Facebook, with 42% of online adult women using the platform. That is more than Twitter, Linkedin, or Instagram. The platform is growing faster than most, too, with an increase from 21% to 28% of online adults on it from 2013 to 2014 (only Instagram did slightly better).


Pinterest is a large and growing platform with exciting prospects for marketers. However, the high ROI of their ads is doomed to decay. To steal a piece of wisdom from Andrew Chen, “over time, all marketing strategies result in shitty clickthrough rates”, meaning that as a certain marketing channel is used more and more, its effectiveness decreases. Email marketing open rates, for example, decreased from 14% to 11.3% between 2007 and 2009.


Fortunately, there are ways to fight this law, and one such solution suggested by Andrew is to “discover the next untapped marketing channel”. That is where Pinterest comes in. Given all I have said above I believe Pinterest ads will consistently be more valuable than other social ads, but the best results will come to those first out of the gate.



Why Pinterest Ads Are Going to Be Great

Five Ways Pinterest Is Beating Facebook

This article is by Troy Ireland, managing partner at Digital Current, a conversion-based digital-marketing agency specializing in content marketing and SEO.


Pinterest has always seemed like Facebook’s cozy little sister. Instead of sharing news articles and memes, Pinterest users (mostly women) curate pages of living room furniture and Halloween party recipes.


But underestimating Pinterest would be a huge mistake. “As social networks go, Pinterest doesn’t get a whole lot of respect,” wrote Kevin Roose in a New York magazine article. “Which will make it even more surprising when Pinterest eats its competitors alive.”


That May 2014 prediction appears to be coming true. Just after the holidays, IBM Digital Analytics released a report showing that overall holiday online sales were up 13.9% for the 2014 season. They looked specifically at Facebook and Pinterest sales and reported on a very interesting statistic: “Facebook referrals drove an average of $101.38 per order, while Pinterest referrals averaged $105.75 per order.”


Since its launch in 2010, the scrapbooking, image-pinning site has been steadily growing and picking up pace. It is estimated to have approximately 70 million active users and is worth about $5 billion. That’s a drop in the bucket compared to Facebook’s 1.2 billion daily users and $210 billion market cap. But Pinterest is growing quickly and, unlike Facebook, the whole setup of Pinterest is designed to move products.


“Pinterest’s power is the volume of referral traffic it generates,” explains Jason Miles, author of the book “Pinterest Power.” “When it comes to that metric, it is already in very rarefied air. The top four sources of referral traffic are organic search, direct typing of a URL, Facebook and then Pinterest.” And if Pinterest can get to 280 million users, it could easily surpass Facebook in terms of driving Internet traffic (and purchases), according to Miles.


To help marketers take advantage of all of this user-generated enthusiasm, Pinterest has started selling Promoted Pins, which are ads that look like Pinterest images and content shared between users. “[They are] sounding the call that Pinterest is open for business and that it wants to compete for ad dollars with the likes of Google, Twitter and Facebook,” according to CNBC.


In many ways, Pinterest is actually already ahead of Facebook. “Pinterest Expert” Anna Cadiz Bennett talked to one of my colleagues about why you might be better off funneling your social media marketing funds to Pinterest:


  1. Visual content marketing: The visuals on Pinterest are clear, clean and engaging. There are lots of reasons why visual content is important for a marketing campaign, but probably the most important is that it grabs instant attention and is quickly processed by the human brain.

  2. Shelf life: Pins last and are easily available forever. On Facebook, they are around for only a few hours (if you’re lucky). “On Pinterest, everything you create and pin lives forever,” Bennett says. “I have blogs from two years ago that are still being shared. No other socials are doing that. In terms of ROI, that’s phenomenal.”

  3. Intent to buy: If you’re lurking around on Pinterest, you are probably looking to purchase something. According to Shopify, “The average order coming from Pinterest is $80, higher than any other site including Google, Amazon and Facebook, which has an average of $40.” On Facebook (or Twitter) you tend to be there for a conversation.

  4. Promoted Pins: Maybe the best tool out there for marketers. They hardly look like ads, they are heavily shared and they are now open to all advertisers.According to Pinterest, “Brand advertisers achieved about a 30% bump in earned media (free impressions!) from their campaigns.” Pinterest now even has an analytics panel as part of its Pinterest for Business tools.

  5. Large female audience on Pinterest: Approximately 85% of Pinterest users are women — and women have $7 trillion in buying power. “Women on Pinterest are 30% more likely to shop or buy online than the average woman, and Pinterest users spend nearly two times the norm,” according to Comscore 2014.

This year, especially as Promoted Pins open up to everyone, will be telling as to how our companies and brands are affected by this relatively new stream of marketing. As marketers adjust their brand plans and start figuring out how to be successful on this powerful social media site, there may be a few growing pains. I would love to hear about any concerns or major problems you have had marketing on Pinterest for a potential future article. If you have your own conclusions about Pinterest’s marketing evolution please share them in the comments below.



Five Ways Pinterest Is Beating Facebook

Pinterest: Marketing boon or bust?


Friends on PinterestToday’s top question; if Pinterest was your friend would it be the kind of friend who will drive you to the airport at 5 am or the kind that invites you out for a good time then leaves you to pay the bill?


Nate over at Forrester has put together some pros and cons of Pinterest in his own attempt to decide: is Pinterest a boon or a bust for marketers? Let’s talk about his findings.


The best news about Pinterest is that it’s mostly populated by young women who love to spend.


The median age on Pinterest is 35, six years younger than Facebook. 84% of those women have ordered something online in the past 3 months.


And these aren’t bargain hunters, either. These are women who want the very best for their homes, best fashions and top quality make-up products.


Forrester’s Social Technographics® Score tells us that Pinterest users are more likely to engage with brands than Facebook users.


Super. Now where’s the bad in that?


The bad news is at the end of the time + effort = ROI equation. Even with all of the pluses, building a successful following on Pinterest isn’t that easy.


As Forrester points out, marketing powerhouse Coca-Cola has less than 5,000 followers on Pinterest and rarely updates their page. The company does seem like a good fit for the audience but it’s not happening.


High-end fashion brand Dolce & Gabbana has more than 150,000 followers but even they have less than 20 repins on most of their pins.


So maybe free isn’t so good, but what about paid ads? Pinterest says that their Promoted Pins beta has been going very well. They say companies have seen a 30% bump in earned media and a residual effect even after the campaign is over.


But Forrester says that Pinterest isn’t doing all they can to help marketers reach the right customers. For example, they only allow marketers to choose from a small selection of interests when targeting ads. Silly when we know that Pinterest is sitting on a huge pile of specific data that could help marketers get a higher ROI.


Now it’s time to answer the question; is Pinterest a marketing boon or bust?


The answer is, we don’t know. There’s potential and lots of it but right now it’s only working for a select few. Will it work for you? Won’t know until you try.



Pinterest: Marketing boon or bust?