Pinterest hasn't brought its ads to market yet, but it's swinging for the fences in terms of what it hopes to charge for them.
The social-bookmarking company is asking for hefty spending commitments between $1 million and $2 million from prospective advertisers, and it's looking to price CPMs between $30 and $40, according to three executives briefed on Pinterest's ad pitch.
The pricing makes it clear that Pinterest intends to have a premium ad offering, similar to Instagram -- at least for now. Instagram tested its first ads last fall with brands like Burberry, Levi's and Lexus and has emphasized high-quality imagery and been slow to bring new advertisers into the fold.
Pinterest began testing promoted pins on the web and its mobile apps almost six months ago with a set of businesses that hasn't been disclosed. However, these initial promoted pinners aren't being charged, since the stated intent by Pinterest CEO Ben Silbermann last fall was to test the ad product and solicit user feedback.
Test pins have only been appearing in search results and category feeds that surface trending pins on topics like "health and fitness" and "home decor," not in users' streams which are the first thing they see upon entering the site. They're marked with the text "promoted pin" and an icon at the bottom of the post.