As Pinterest is set to move closer to its initial public offering, the platform is busy building out its ad tools, with an eye on maximizing its potential, and boosting the market value.

In this regard, the Pinterest platform has unveiled two new ad options recently, among which are Conversion Optimization and Promoted Video for Conversions.

On the first, Pinterest is following the lead of other social platforms in providing an automated way for advertisers to optimize their ad reach for a chosen goal.

According to Pinterest:

Conversion optimization is a new campaign type that optimizes Promoted Pins for specific consumer actions, instead of just clicks. For the very first time, advertisers are now able to select conversions as a campaign objective and encourage people to take specific actions such as online checkouts, increased signups or stronger leads."
In order to leverage Conversion Optimization, you first require having installed Pinterest Tag on your site. Once you have the tag in place, you can track visitor actions after seeing your ads on Pinterest. This then allows Pinterest's system to better determine which types of users will take different actions in response to your ads-from there, the system can use that data to form templates of user behavior, and enable you to target different people to achieve different objectives.

For example, if you want to drive more conversions, you can choose the Conversions option and Pinterest will show your ad to users that are statistically more likely to convert in response to your ad.

As mentioned, a number of other platforms offer similar tools, and it's rapidly becoming something of a default in helping to drive a desired action.

And Pinterest says that brands in its initial tests have already seen good results:

"Using conversion optimization, brands like Gravity Blankets achieved a 2x increase in sales and a 58% lower cost per acquisition, according to the company. Flaviar, a club for spirits enthusiasts, saw 409% more traffic and an 8x increase in leads from October 2018 compared to the month before when testing conversion optimization."

Obviously, results will vary, and it is particularly dependent on the dataset you're able to provide (i.e. you need a reasonable level of response to provide relevant data to Pinterest's system). But it's an interesting option, and can drive significantly improved results in many cases.

In addition, Pinterest is also adding Promoted Video for conversions.

We are expanding our Promoted Video offering to serve converters who have traffic or conversion objectives. Promoted video for 'conversions' goals will click over to a landing page that houses the advertiser's website, plus a close-up of the video. Promoted Video has proven to be a powerful format in driving these kinds of objectives because it uses sight, sound, and motion to demonstrate product features and benefits.

At 265 million users, and growing, with users coming to the platform with high purchase intent, it's definitely worth considering the potential of Pinterest within your digital marketing program.

Both Conversion Optimization and Promoted Video for conversions are now available to all Pinterest business accounts.