The Point: While concerns about economic uncertainty may lead consumers to cut back this year, people on Pinterest still plan to treat themselves—and others—to small luxuries to inject joy into their everyday lives wherever they can.
The pandemic caused people to rethink how they celebrate the festive season, and the current economic climate seems poised to cause further disruptions this year. Marketers are understandably nervous: research shows that shoppers across Europe plan to cut back on holiday spending due to concerns about personal finances.
However, our research shows that people on the platform still prioritise celebrating life’s important moments, and are looking to indulge in luxuries—for themselves and others—even in moments of economic uncertainty. In fact, while the current economic climate is a major concern for many advertisers, the shadow cast by this economic crisis could actually spur shoppers to treat themselves to small luxuries. This trend has historical precedence—the lipstick index, coined by Estée Lauder’s Leonard Lauder, is the idea that sales of affordable luxuries rise in economic downturns.
Not to mention, Pinterest’s search data shows that while the world may be experiencing a financial downturn, people on the platform still want to treat themselves and others to high-end, luxury products.
People on Pinterest love to buy gifts—for themselves and for others
There have been major upticks in searches for luxury cosmetics, accessories and gifts, proving, even now, that these indulgences are still a hot topic for Pinterest users. Searches for “luxury makeup” have increased almost 3x YoY in the UK, while searches for “luxury perfume” and “expensive jewellery luxury” are both up 2x.2
Luxury brands have taken note of these trends and are seeing success with targeted ad campaigns on the platform. MATCHESFASHION achieved a 42% increase in return on ad spend (ROAS) by pairing a conversion campaign with an always-on awareness campaign in the UK, reaching customers in important moments of discovery.3 They targeted users interested in men’s and women’s fashion and homeware and used carousel, standard and video ads featuring high-end editorial-style visuals that grabbed viewers’ attention.
Meanwhile, in France, Guerlain partnered with Pinterest to promote their Rouge G lipstick by using a variety of ad formats and targeting their core audience of high-end female shoppers between 25 and 49. They managed to increase brand awareness by 14% while simultaneously driving a 40% increase in add-to-cart conversions in the lead-up to Christmas.4
Inspire shoppers to find the perfect gift
While people may engage with other platforms to chase likes or see what everyone else is doing, we know they come to Pinterest searching for inspiration—and they’re ready to act on it. The platform helps people rediscover the joy of shopping by creating a tailored experience that introduces them to new products and ideas that they didn’t even know they were looking for.
Brands can tap into seasonal moments year-round—YSL Beauty promoted their LIBRE perfume on Pinterest in the lead-up to Mother’s Day by combining a consideration and conversion campaign with an awareness campaign for a full-funnel approach in France.
The brand used Pinterest’s insights into people’s shopping habits to tailor their ads to each step in the path to purchase. Their video ads were crafted to build awareness, Collections Ads to boost consideration and Shopping Ads drove sales conversion.
The result? They reached 84% of their target audience and saw a 23% lift in incremental sales on their e-commerce site.5
9 out of 10 people on Pinterest use the platform for gift-giving ideas, and when it comes to holiday gifting, people come to the platform open-minded and undecided about what to buy.6 This mindset creates an opportunity for luxury brands to showcase their products to an audience that’s receptive to discovering something new.
But while people may arrive undecided, by the time they leave they’re inspired to make a purchase. Shoppers on Pinterest in the UK spend 40% more per month than people on other platforms, and their baskets are 30% bigger.7
That’s because Pinterest is a decision-making engine that drives consumers from discovery towards a purchase decision. It helps them find the best ideas, brands, products and solutions, allowing them to pick the one that’s right for them.
Furthermore, there’s a corner of Pinterest for every interest and the platform makes it easy for brands to connect with their perfect audience by providing precise targeting tools, ensuring their ads reach the right people. People interested in luxury are a core part of Pinterest and brands can now target specific luxury interests like “luxury living”, “luxury watch” or “luxury closet” within broader categories. This provides luxury brands an opportunity to capitalise on Pinterest users’ interest in high-end goods. (Contact your Pinterest rep to learn more.)
By using targeted ads to find the perfect audience and creating engaging full-funnel campaigns, brands can inspire people to indulge in little extravagances for themselves and others.
Act on the insights
01
Activate more moments
Plan campaigns around seasonal moments so that people see your ads when they’re most receptive to them. Remember that people on Pinterest are planners, so trends start earlier here.
02
Lean into trends
Use Pinterest Trends tool to discover which topics and keywords are on the up. Align your creative with relevant trending topics in order to reach an engaged audience.
03
Get personal
Bring your brand to life by using the first-person perspective offered by Pinterest’s Idea ads. Consider paid partnerships with creators who can put together relatable content that resonates with viewers.