Leading Home Goods Brand Uncovers 4.8% Growth Opportunity with Pinterest Incremental Scale Test
Is Pinterest a viable growth channel for our business?
This top 10 home goods brand, as ranked by Shopify, has been experiencing hyper growth year-over-year since the introduction of their quality direct-to-consumer products over a decade ago. The brand embodies the epitome of test-and-learn culture, continuously questioning their traditional media practices by experimenting in every channel possible; always validating their media’s true contribution to their business growth.
As a digital-native DTC brand, the company relies heavily on social media to reach its target audience. Facebook has been particularly successful, but is also becoming more expensive with less reliable reporting. The Director of Customer Acquisition wanted to learn if additional channels could expand the brand’s online presence and deliver greater efficiency and lower cost per order (CPO) than Facebook.
They identified Pinterest as a promising channel for diversifying the brand’s advertising strategy. With significant budget at stake, however, they hesitated to scale the brand’s ad spend without understanding if Pinterest would perform. Launching a nationwide test would be expensive and complex, but the alternatives – expanding based on guesswork or failing to diversify – were unacceptable options for this data-driven brand.
The brand partnered with Measured in 2021 to mitigate the risks and increase confidence in their decision to diversify into Pinterest. Instead of the cost and complexity of a nationwide test, Measured enabled the brand to experiment efficiently with a state-level geo-matched market scale test.
The Geo-Match Market methodology was selected as it can be run independent of platform reporting and doesn’t rely on user-level data to uncover reliable incrementality results. Additionally, the business outcome is measured directly from the brand’s ecommerce platform, ensuring accurate outcome measurement. By simulating a Pinterest spend increase by 2.5x in smaller, high-correlation test markets , the scale test would reveal the expected incremental sales increase, directly attributable to Pinterest at a national level, should the brand ramp up as planned.
“Measured gave us the insight we needed to diversify with high confidence and low risk. That translates to higher revenue, greater agility, and the ability to ensure our media strategy keeps up with today’s rapidly changing advertising landscape.” Sr. Director, Customer Acquisition
4.8% Sales Increase in Test Market
The brand’s order volume soared during the month that they scaled up spending on Pinterest, increasing sales that could be directly attributed to Pinterest by 4.8%. Through the scaled geo test, Measured determined that the incrementality of Pinterest was 94%, 1.4x that of what was previously assumed. The experiment clearly demonstrated that Pinterest shows substantial upside for the brand to expand, diversify, and optimize its online advertising strategy.
With the confidence gained from their incrementality test, the brand team intends to increase spend on Pinterest in the coming quarters. The brand continues to look to Measured for additional insights, including how to strike the right balance between channels and techniques for driving down CPO.