Why Pinterest's new CEO could signal new era of social commerce

Pinterest named Google's Bill Ready, who led the tech giant's commerce efforts, as its new CEO this week in a signal of the growing importance of e-commerce for social platforms. Pinterest marketers see the change in leadership as encouraging, possibly positioning Pinterest to become a truly full-funnel shopping destination. “Pinterest has been trying to scoot itself closer to the bottom of the funnel for a while to attract advertisers, and this leadership change definitely seems to be aligned with that,” said Melanie Travis, founder and CEO of Andie, a swimwear company and a verified merchant on Pinterest. “We would definitely consider spending more on Pinterest if we saw a stronger return on ad spend in terms of last-click conversions.” Ready, who replaces Ben Silbermann as CEO, had served as Google's head of commerce, payments & next billion users. Advertisers expect he will help Pinterest forge deeper relationships with retailers. At Google, he oversaw Google Shopping, helped incorporate commerce into YouTube and invested in payment systems like Wallet. He also spent time at both Venmo and PayPal. Check out the latest Ad Age events and award programs “Bill is a proven leader, whose experience in payments, product development, and shopping uniquely positions him to take Pinterest to its next phase of growth," Andrea Wishom, Pinterest board lead independent director, said in a June 28 statement announcing his hire. "It is a testament to the remarkable vision and leadership of Ben that we are able to welcome Bill, who shares similar values. The Board and I look forward to working with them both to accelerate Pinterest's strategy of bringing everyone the inspiration to create the life they love.” But there is some concern that Pinterest could go too far into commerce. "I would wave a flag of caution here. Shoppable features on the platform have allowed people to really buy their ideas, but thankfully the commerce elements haven’t overwhelmed the inspiration foundation," said Ellie Bamford, senior VP, global head of media and connections at R/GA. "It would be a shame to see what Pinners cherish about the platform be swallowed up by a bombardment of shopping products. I’d also caution brands and advertisers to find a balance between commerce and brand love in their activations." Marketers are also keeping an eye on what the changes could mean for creators who work with branded Pinterest campaigns. “We’re bullish on this development,” Dylan Conroy, chief revenue officer of The Social Standard, an influencer marketing agency, wrote in an email about Ready’s appointment. “This kind of focus requires partnerships with influencers to power these e-commerce tactics.” Pinterest has reached more than 430 million users and has launched several ad formats, live shoppable TV capabilities and native checkout as ways to attract more advertisers. The platform has struggled with being a full-funnel shopping destination, often billing itself as a place of discovery, planning and inspiration. Brands and advertisers are eager to see more sales completed after consumers have perused the platform. Social media users have made it clear that they are happy to switch from scrolling to typing in a credit card for a social media purchase. A retail survey by Forrester last year found that 61% of U.S. online adults under 25 years old said they'd completed a purchase on a social media network without leaving the website or app, which was up from 53% in 2020. “[Pinterest users’] actions clearly telegraph their intent to discover, compare and purchase, generating masses of lucrative data for advertisers,” wrote Tom Hyde, VP of strategy at Movers+Shakers. But he also notes that Pinterest is “feeling the pinch” from TikTok and Instagram, whose algorithms are better at surfacing unexpected products, as seen by the success of #TikTokMadeMeBuyIt. Sign up for Ad Age newsletters From influencer marketing to agencies, get the latest news and analysis delivered to your inbox Click here

Why Pinterest's new CEO could signal new era of social commerce

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