Social media platforms are bracing for a potentially rough quarter, but they do have one hope: those “tap here to buy now” ads.
Driving the news: Pinterest said it hit its first quarterly profit of the year because its ads are more relevant than ever. That was a much more optimistic tone than its competitors.
E-commerce is a huge part of Pinterest’s ad pitch since its users are already primed to try to recreate the outfits or home decor they are looking at for inspiration.
Why it matters: It might not be as buzzy as AI, but social platforms have spent years investing in the opportunity for growth around e-commerce, with zero signs of slowing down.
Pinterest has enlisted Amazon to provide ads that link directly to product pages, opening the platform up to sellers already part of Amazon’s growing ad network.
Snap and TikTok have joined Meta and Pinterest on Shopify Audiences, a tool that helps small, local retailers run e-commerce-linked ads on major social networks.
Meta recently introduced a paid program that verifies Canadian businesses and gives them access to tools that improve visibility on Facebook and Instagram.
Yes, but: Shopping-focused ads only work if the people seeing them are actually able to buy stuff. And if we are headed towards a recession, that isn’t a certainty.—JK