Pinterest’s Foray into CTV: A Strategic Play for Growth
Pinterest is set to make its debut in the connected TV (CTV) space, marking a significant milestone in the company’s evolution as a performance marketing platform. This move comes on the heels of Pinterest’s acquisition of tvScientific, a CTV startup, in December last year. The deal, which was officially closed in February, has paved the way for Pinterest to leverage tvScientific’s platform to tap into the lucrative CTV ad market.
The Acquisition and Integration
The acquisition of tvScientific has been a strategic play for Pinterest, enabling the company to expand its reach beyond its core platform. As part of the integration, tvScientific will now have access to Pinterest’s user audience data for CTV ad targeting. This marks a significant development, as Pinterest’s users will now be retargetable outside of Pinterest for the first time, including in streaming TV environments.
Key highlights of the acquisition and integration:
- Pinterest acquired tvScientific in December and closed the deal in February
- tvScientific platform to leverage Pinterest’s user audience data for CTV ad targeting
- First time Pinterest’s users will be retargetable outside of Pinterest
The Significance of CTV for Pinterest
The CTV ad market is expected to exceed $45 billion and surpass linear TV by 2028, according to a recent eMarketer forecast. This growth potential has attracted Pinterest, which sees CTV as a strategic opportunity to expand its reach and offer advertisers more addressable and measurable channels. By entering the CTV space, Pinterest is positioning itself for growth and diversification, moving beyond its core platform.
Why CTV?
CTV represents a lean-back, big screen experience that is more addressable than linear TV. This aligns with Pinterest’s efforts to rebrand itself as a performance marketing platform, offering advertisers more effective ways to reach their target audiences. As Chip Jessopp, VP and GM of programmatic ad sales for Pinterest, noted, “The longer-term strategy is to be able to enable advertisers to optimize that Pinterest intent signal, both on- and off-platform.”
The Future of Pinterest’s CTV Strategy
In the near term, tvScientific will focus on increasing its performance capabilities and scalability. This will enable the platform to better support Pinterest’s advertisers and provide more effective CTV ad targeting. Looking ahead, Pinterest’s CTV strategy will focus on enabling advertisers to optimize their campaigns across platforms, leveraging Pinterest’s intent signal to drive better outcomes.
Key priorities for Pinterest’s CTV strategy:
- Near-term focus: increasing tvScientific’s performance capabilities and scalability
- Long-term strategy: enabling advertisers to optimize Pinterest’s intent signal on- and off-platform
Performance Marketing and CTV
Pinterest’s move into CTV reflects a larger trend of advertisers seeking more addressable and measurable channels. As a performance marketing platform, Pinterest is well-positioned to capitalize on this trend, offering advertisers more effective ways to reach their target audiences. By integrating its audience data with tvScientific’s CTV platform, Pinterest is underscoring the importance of convergence between online and offline advertising channels.
The Rise of Addressable CTV
Pinterest’s entry into CTV highlights the growing importance of addressability in the streaming TV space. As advertisers increasingly seek more effective ways to reach their target audiences, addressable CTV is emerging as a key trend. This trend is likely to shape the future of TV advertising, enabling advertisers to optimize their campaigns across platforms and drive better outcomes.
The Blurring of Lines between Platforms
The integration of Pinterest’s audience data with tvScientific’s CTV platform underscores the increasing convergence of online and offline advertising channels. As advertisers seek more holistic marketing strategies, the lines between platforms are becoming increasingly blurred. This convergence is driving innovation and growth in the advertising industry, enabling companies like Pinterest to capitalize on emerging trends and opportunities.
Conclusion
Pinterest’s debut in the CTV space marks a significant milestone in the company’s evolution as a performance marketing platform. With its acquisition of tvScientific and integration of its audience data, Pinterest is well-positioned to capitalize on the growth potential of the CTV ad market. As the advertising industry continues to evolve, Pinterest’s CTV strategy is likely to play a key role in shaping the future of TV advertising. With its focus on addressability, measurability, and performance, Pinterest is poised to make a meaningful impact in the CTV space.
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