Dive Brief:
- Pinterest has acquired connected TV advertising platform TvScientific, according to a press release. Financial terms of the transaction, which is expected to close in the first half of next year, were not disclosed.
- This is the first time Pinterest has wedded its intent-based audience insights with a CTV advertising engine. TvScientific’s platform will be integrated directly into Pinterest’s performance ad products, including its suite of Pinterest Performance+ artificial intelligence solutions.
- The deal is intended to provide Pinterest’s advertising partners a clearer line of sight into how CTV improves their performance ad campaigns. It also opens an avenue for more cross-screen capabilities, broadening Pinterest further beyond mobile and desktop roots where growth could be harder to come by.
Dive Insight:
Pinterest is cracking into the burgeoning CTV space with TvScientific, a startup that aims to make the channel more accessible and measurable for advertisers. TvScientific, which will continue to operate under its own name after the acquisition closes, claims to reach 95% of ad-supported video-on-demand audiences and relies on a proprietary identity solution to tie CTV campaign exposure to business outcomes. In addition, the firm has an automated media-buying platform and AI-powered optimization tools.
The deal is still subject to customary closing conditions, including regulatory approvals, but Pinterest indicated the price tag will not be steep enough to have a material impact on its financial results. Pinterest will initially focus on scaling TvScientific in the U.S. before shifting to more international markets.
Pinterest is seeking to combine TvScientific’s CTV capabilities with high-intent audience insights derived from its 600 million monthly active users, a large chunk of whom visit Pinterest for style and product inspiration. Pinterest has worked to make its site more shoppable — i.e., performant — by linking its data signals with AI technology and an offering called Taste Graph to share personalized recommendations with users.
With TVScientific, Pinterest wants to bring the same level of precision that is available on digital to CTV. The acquisition also helps Pinterest to position itself as a more multichannel ad platform as brands seek all-in-one partners and shift more budgets to performance marketing.
“People plan and shop across multiple screens, and advertisers need performance solutions that reflect that reality. For the first time, Pinterest advertisers will be able to evaluate TV with the clarity they expect from their performance channels,” said Bill Ready, CEO of Pinterest, in a statement around the deal. “Looking ahead, advertisers will be able to buy TV with the performance metrics they are already using, turning Pinterest into a true search, social, and CTV performance solution.
“This is an exciting progression in our multi-year strategy to drive new sources of demand to Pinterest and begin to allow advertisers to reach our valuable audience beyond our platform,” Ready added.
Pinterest saw revenue rise 17% year over year to $1.05 billion for the Q3 period ended Sept. 30. However, the company missed analyst expectations on earnings and shared disappointing guidance for Q4, an important window that includes the holidays.
