While both Facebook and Google have made a kill in advertising, Pinterest like the other companies also makes money from advertising; but now it thinks it can make even more money if it gives advertisers better targeting to reach the right people.
The company announced the “Taste Graph,” which is a collection of 5,000 user interests that advertisers will leverage to reach specific niche audiences.
The Taste Graph list is quite expansive, and includes some niche interests like “vegetarian barbecue,” “desk yoga” and “email newsletter design” according to the company.
It is built on artificial intelligence, proving what’s possible to achieve by developing cutting edge algorithms. Albeit, the Taste Graph has been around for a while and has historically been used for organic content.
John Milinovich, Pinterest product manager said the Taste Graph kind of niche targeting leads to better performance, and ultimately cheaper ads; adding that all of Pinterest’s 5,000 user interests will be approved by human.
Pinterest is estimating revenue of over $500 million this year, and the targeted advertising to reach more people that are looking for a specific niche item remains the primary differential.
