Pinterest Business Model Canvas

Pinterest presents a fascinating business model, one that illustrating a unique marketing platform that benefits both advertisers and consumers. Pinterest is unlike any other social media platform because it provides a space for companies to potentially advertise their products in such a way that consumers actually do the advertising. Customers who like a product or idea will “pin” it and add it to their board, allowing other Pinterest users to see the goods that they themselves like or would buy. They can connect what they have pinned to various social media outlets. Companies have used to this to their advantage and many company websites now have a link that allows customers to “pin” their product.

There are several critical aspects of the company that must be noted. There are two primary customer segments. The first customer segment involves online shoppers who frequently use the website and drive traffic to the site. They generate buzz for the website and are the users that have propelled Pinterest to become the third most used social media website, only behind Facebook and Twitter. The second customer segment are the marketers, companies that ideally would be willing to pay to have their products displayed on the wildly popular site. The site needs both the customers and the marketers to be financially successful.

The data suggests that Pinterest has enormous potential to make money. They have not yet saturated the very large market of online shoppers, and more companies want to become involved with the site as Pinterest’s popularity increases. Companies benefit because Pinterest allows them to track when customers "pin" their products. This provides a wealth of market research that may be impossible to get otherwise. As long as Pinterest can maintain their image that it is customer run, instead of run by companies who advertise on the site, then they have the potential to make significant profit through advertising.

Though it is a website based platform, companies advertising how to “pin” their products on their own websites and in advertising materials, which means there are several channels for this company to reach customers. This dynamic relationship between Pinterest and other companies will help maintain its success.

Link to Google Doc spreadsheet: https://docs.google.com/spreadsheet/ccc?key=0AgGIN6YV3DEodEhtaTNvRkwxM0JHeUZJbGVmNHBHYVE&usp=sharing

References:

http://smallbiz.theupsstore.com/blog/small-business-blog/2013/03/05/pinning-for-success-5-ideas

http://theemergingdesigner.com/understanding-the-new-pinterest-analytics-feature-for-business-accounts/

http://www.e-marketingassociates.com/pinterest-for-business-innovative-ways-to-use-pinterest-to-drive-brand-awareness/

http://adage.com/article/digitalnext/pinterest-social-search/241683/