$2 in profit for every $1 spent: Analytic Partners’ analysis shows Pinterest’s impact

Person shopping for clothes

How Pinterest measures up

Analytic Partners recently measured Pinterest campaigns for five advertisers across packaged goods and retail. They used marketing mix modeling (MMM) to capture the impact of each marketing channel on business outcomes. Their studies found that Pinterest had an especially strong return and performed more efficiently than other platforms.

Let’s take a closer look at the three key findings3:

  • Outperforms other measured channels: Across the five brands studied, Pinterest outperformed the overall marketing average by 45% (digital and offline). For every $100 the brands spent on Pinterest, they got $60 more profit than from other measured channels. That shows that Pinterest delivers a more efficient and effective ROI than other types of media.

  • $2 in profit per dollar spent: Pinterest delivered $2 in profit for every $1 the advertisers spent. When we looked at gross retail dollars instead of profit, that translated into a $4.3 return per dollar spent. Plus, Pinterest consistently ranked in the top third of all individual marketing channels assessed.

  • Untapped upside and opportunity to scale: There is an opportunity for marketers to scale their spend and drive a proportionally larger business outcome. Analytic Partners found that each advertiser in the model could increase their Pinterest spend to 5% of their total marketing budget, while maintaining ROI.

“As we measure cross-channel marketing effectiveness for our clients, we find many brands that lend themselves well to being discovered and inspiring consumer engagement on Pinterest,” said Fred Chassé, Senior Vice President at Analytic Partners. “While starting spending levels need to be considered overall, we have found that there is an opportunity to significantly increase spend with Pinterest. We recognize that each brand is unique and will respond differently and we work with marketers to review how each marketing channel fits their messaging and customer strategy to optimize marketing investment for brands.”

A focus on results

MMM helps businesses get better insight into their spend because it looks at a broad range of inputs, and a detailed set of relationships. That helps brands understand what’s driving growth and how to optimize future investments. It also uncovers dynamics that are often obscured by other types of measurement studies.

What Analytic Partners found isn’t an isolated case. Other Pinterest Marketing Partners have announced similar findings as they look at their client’s performance. “Pinterest is remarkable in their ability to take clear consumer intent and drive authentic brand awareness and consumer action,” said Laura O’Shaughnessy, Co-Founder and CEO at SocialCode. “We're thrilled to see the performance on Pinterest and expect there to be an impact on how our retail and CPG partners approach Pinterest as a result. This performance, combined with Pinterest's new search options, continue to demonstrate the differentiated value of the platform."

Want to learn more about marketing mix models? Check out our white paper for methodology details and a measurement case study.  

–Casey Lin, currently saving to veggie delish


1Pinterest, US analysis, Sep 2017

2Kleiner Perkins, Internet trends report, 2016

3All findings come from Analytic Partners, Marketing mix model with five advertisers across retail and CPG, May 2017