Wednesday, June 27, 2012

Pinstagram And The Rise Of Mash-Up Apps


BY David Zax | 06-22-2012 | 9:30 AM
They're hot now but do mash-up apps have a future? We talk with Brandon Leonardo, cofounder of the Pinterest/ Instagram combo Pinstagram, to find out. We also pitch him a few of our ideas, including "Shazump," "Spotifurious," and "Angry Fruit Ninjas." Let the investment cash flow!


Brandon Leonardo is one of the cocreators of Pinstagram, a "mash-up app" that combines features of... you guessed it. In essence, it takes the functionality of Instagram and splashes it in the elegant waterfall layout familiar to Pinterest fans. Pinstagram recently debuted its iPad app (and rose to be the No. 1 new and notable app in the Photo and Video category this week). Fast Company caught up with Leonardo to talk about the future of the mash-up app, and to pitch him a few ideas of our own.
FAST COMPANY: Tell me the origin story of Pinstagram.
BRANDON LEONARDO: Pek [Pongpaet, his cofounder] and I were having lunch on a Friday, joking around: "Pinterest is a huge company, and so is Instagram. What would happen if we just smashed them together?" We were just laughing about it. But then you could see the wheels starting to turn in Pek’s head. He brought it up a couple more times: "I think Pinstagram would be really cool," and I kind of chuckled. The next morning at noon Pek called me and said, "You’re never gonna believe what I built. Look at your Dropbox." By that time he had pretty much gotten the entire site designed. We went into hackathon mode, and by Sunday we were basically done with the initial version we launched with.
Are you in dialogue with Instagram or Pinterest? Aren’t you running afoul of laws here?
Pinterest’s waterfall layout was not invented by Pinterest. It’s a jQuery plug-in someone created a couple years ago and released it open-source. Pinterest gets credit for making it famous, but it’s not necessarily copyrightable. On the Instagram side, we’re using their public API. And it’s kind of a win-win: we’re sending them lots of likes, comments, and actions.
It seems like the sort of thing where either you get a cease-and-desist letter, or you get acquired.
No one has sent us a cease-and-desist letter. In fact we got coffee with a Pinterest engineer last week. The founder of Pinterest has actually used Pinstagram. On the Instagram side, no one’s contacted us.
You built an iPad app before an iPhone app. Why?
Instagram’s already on the iPhone. We’ll never be a better Instagram than Instagram. What we can do is build the best iPad viewer.
Let’s talk more about this idea of the app mash-up. How exactly do you splice the genes, and is there an island where you put your failed experiments?
You take the best pieces of each. The benefit to having a hackathon, is you have a severe focus on only what’s necessary. This is Pek’s and my third project together. The other ones are running, but this is the one that took off like crazy. But having an island sounds like a great idea. The island where source code goes is GitHub.
Do you think there will be more app mash-ups, more "Grey Albums" of the app world?
I think building products, period, is good. Any time you’re creating something and putting it out in to the world, you get a little bit closer to perfect. Nothing anyone has ever built has been perfect. But you keep improving on little things, and you get closer and closer. If you want to do a mash-up, you should do it.
Good. Because I want to pitch some mash-up apps to you.
Okay.
“DoodleJitter.” It’s a mash-up of Doodle Jump and Twitter. You can only play the game for 140 seconds or less.
That’s about how long I play Doodle Jump right now.
How about a mixture of Shazam and Bump called “Shazump”? You use it to quickly exchange songs.
Do you want me to rate these?
Yeah, if you were a VC, how much money would you give me?
The music business is the worst business to be in, so I’d say no. Spotify is the only one I’ve really seen be successful.
Okay, how about a mash-up of Spotify and Epicurious, called “Spotifurious.” You use it to stream unlimited food.
Could you use that in other parts of the world? I don’t think the U.S. needs more food.
“Angry Fruit Ninjas.” It’s just a much more violent version of Angry Birds.
Oh yeah. Absolutely. That sounds like a winner. That one I would give you the most money for. Throw some zombies in there, and in three years, you’ll be acquiring Zynga.

Brands’ Twitter Engagement Rates Seen Higher on Weekends


Share11
buddymedia-best-days-to-tweet-by-indus-june2012.pngAlthough only 19% of brand tweets are published on weekends, these tweets show engagement rates that are 17% higher than weekdays, according to a June 2012 Buddy Media report. Certain industries can benefit even more from tweeting on weekends: for example, engagement for sports brands is 52% higher than average on the weekend. Clothing and fashion brands (+30%) also see higher-than-average engagement rates on the weekend, despite only 12% of industry tweets occurring then. For the publishing industry, Saturday sees engagement rates that are 29% higher, though only 7% of tweets occur on that day. And for the entertainment industry, Sunday and Monday are key, with tweets published then receiving 23% more engagement than average.
According to May 2012 research from Bit.ly, though, when looking to achieve high click counts, tweeting a link earlier in the week (Monday through Thursday) gives the best chance. However, January research from Hubspot’s Dan Zarrella - that analyzed 200,000 link-containing tweets - disputes this, finding that click-through rates (CTRs) are higher on Friday, Saturday, and Sunday than during the week.
The Buddy Media report defines engagement rate as a combination of the number of replies and retweets a tweet receives, factoring in the number of followers. All analysis in reference to tweet timing and scheduling is based on Eastern Standard Time (EST).

“Busy Hours” Get Higher Engagement Rates

Further data from Buddy Media’s “Strategies for Effective Tweeting: A Statistical Review” indicates that when brands tweet between 8 AM and 7 PM (”busy hours”), they get 30% more engagement than during “non-busy hours.” This aligns with the Bit.ly research on click-throughs, which found that the optimal time to post tweets containing links is between 1 and 3 PM.
Interestingly, though, referring to earlier research, the Buddy Media report suggests that Facebook post engagement rates are 17% higher during non-busy hours. The Bit.ly research indicates that on Facebook, links posted from 1-4 PM result in the highest average click throughs.

Ask For Retweets And Ye Shall Receive

The Buddy Media report also finds that tweets that specifically ask followers to retweet or “RT” get 12 times higher retweet rates than those that do not contain this request. And yet, just 1% of brands use this strategy. Of note, spelling out the word “retweet” results in retweet rates that are 23 times the average, compared to the shortened “RT,” which only sees a retweet rate 10 times higher.
This result is supported by May 2012 research from Hubspot’s Dan Zarrella. He found that tweets containing the phrase “please retweet” were retweeted 4 times more often than those not containing a call to action.

Other Findings:

  • According to the Buddy Media report, there is an inverse relationship between daily tweet frequency and engagement. The optimal amount of daily tweets appears to be between 1 and 4, although a single daily tweet receives the highest engagement rate.
  • Tweets that contain less than 100 characters demonstrate 17% higher engagement than longer tweets. According to Hubspot’s Dan Zarrella, though, this differs when looking for click-throughs: those between 120 and 130 characters in length appear to have the highest CTR.
  • Per the Buddy Media study, tweets that contain links get 86% higher retweet rates than tweets without links.
  • Tweets with hashtags receive twice as much engagement as those without. However, only 24% of brand tweets contain hashtags.
  • Tweets with image links also have twice the engagement rate of those without.
About the Data: The Buddy Media findings are based on an analysis of user engagement from more than 320 Twitter handles of the world’s biggest brands. The study was conducted between December 11, 2011, and February 23, 2012.

Tuesday, June 26, 2012

The Tween Machine


She is influential and already knows more about technology than you ever will. And she has marketers in her sway
  • June 25 2012
Photo: Joshua Scott; Prop Styling: Terry Lewis for agentoliver.com
Advertisement
Her toys have been relegated to the back of the closet. She knows the lyrics to every Katy Perry and One Direction tune. She finds Charlie the Unicorn hysterical, rates articles on Reddit and pens op-eds for AllyKatzz. She likes Frappuccinos, is already getting into yoga, has her legs waxed (at least according to a New York Times story) and wishes her life had a voiceover, à la Gossip Girl.
She wants to be anything but the age she is, always looking toward the future, is ambitious, opinionated, influential—and knows more about technology than you ever will.
She is 9 years old. She is a tween.
The 20 million boys and girls in this country aged 8 to 12 (code name: Generation Z) are the new power players of consumerism. Calculations vary according to the assorted ways tweens are defined (some say they’re 9 to 12, others 10 to 12), but one estimate has kids aged 8 to 12 spending $30 billion of their own money annually and influencing another $150 billion of their parents’ spending.
It’s little wonder that marketers are paying so much attention to them, devoting an estimated $17 billion a year to get in front of their shorter-than-a-tweet attention spans.
With 41 percent of kids 6 to 12 putting Apple’s iPad at the top of their Christmas lists this past season, per Nielsen, this is a group of digital natives who are on the cutting edge not only of technology but also media, trends, brands—and everything in between.
“This is the first time in human history when children are an authority on something important,” contends Don Tapscott, author of Grown Up Digital and Macrowikinomics: New Solutions for a Connected Planet. “Today, the 11-year-old is an authority on this digital revolution, which is changing business, commerce, government, entertainment—every institution in society.”
Decked out in their Hollister hoodies, these littlest consumers increasingly are sitting in the driver’s seat, and taking the rest of us along for the ride.
“Tween” may be a relatively new term, yet everyone reading this was one once. So how did this particular group of pre-teens become so influential, and exactly how are they so different from the generations before them?
“We know for sure that tweens have a different cognitive structure—they need more stimulation,” explains Kit Yarrow, consumer psychologist at Golden Gate University and co-author of Gen BuY: How Tweens, Teens and Twenty-Somethings Are Revolutionizing Retail. “Things have to be faster and more exciting in order to entice them.”
Beyond the takeoff of helicopter moms and the advent of the stay-at-home dad, parents in general tend to be more involved with their children’s lives now, altering long-established norms of family life. Says Yarrow: “Before, kids had to fit into the parents’ lifestyle. Now, parents fit their lives around their kids. In many households, lives—social, financial and intellectual—are at a tween level. [As a result], kids get a sense their own judgment is much more valuable and relevant.”
Some 11-year-old at the breakfast table weighing in on everything from where the family should go on vacation (Club Crush Atlantis!) to what’s for dinner tonight (pescatarians rule!) to Mom’s skort (gross!) is not new, but never has that child had more real power in the household—notably financial power.
“We talk about the buying power of the typical American mom or dad and how they make all of the purchasing decisions, but when the kids get to this age, they have a huge influence on what is bought,” says Ana Connery, editorial director for The Parenting Group, publisher of Parenting and Babytalk.
By 2009, tweens had become such a force that the publisher introduced a new edition, Parenting School Years, targeted to their parents. This, as Meredith Corp.’s Family Circle launched the tween-mom blog Momster.
As for traditional media catering to tweens, magazine titles such as Bauer’s J-14 and Twist have become mainstays. And while young-skewing TV series like The CW’s Gossip Girl and The Vampire Diaries aren’t quite age-appropriate for tweens, Disney Channel and Nickelodeon have become wildly popular destinations for the demo, featuring fare like the long-running Nick hit iCarly, starring Miranda Cosgrove, Adweek’s cover girl.
Consumer goods targeting the demo have also exploded, with tween-centric apparel, video games and makeup filling the shelves of brick-and-mortar and virtual stores. Walmart and Target each launched a tween beauty line (geoGirl and Willa, respectively)—a no-brainer when one considers research by NPD Group revealing that girls 8 to 12 nearly doubled their consumption of mascara and eyeliner in just two year’s time.
Chobani yogurt has introduced a variety just for kids, Chobani Champions, supported by a national TV campaign launched this month. On the heels of the seemingly endless, rules-of-grammar-shunning tween offspring of national clothing retailers—Abercrombie Kids, Crewcuts—Mattel announced it is expanding its domain far beyond the Barbie doll, with a girls apparel line slated this fall in chains including Walmart and Kmart.
All the while, legislative efforts to curb the marketing of certain foods to kids has stalled, meaning that the McDonald’s Happy Meal will live to see another day. (Nestlé’s new Girl Scouts-themed Crunch bar might not be so lucky, having already incurred the wrath of health advocates.)
But even as tween-targeted products and businesses proliferate, the issue remains how marketers can most effectively reach a demo that is notoriously hard to pin down and famously savvy when it comes to ad messages.
Tapscott says most of what we know about marketing to the demo is “wrong or is becoming wrong,” explaining that today’s tweens are well on their way to shattering the four P’s of marketing—product, place, price and promotion. “They don’t want product, they want experiences. It’s not just the marketplace or the market space that is important; it’s the intersection between the two.” As for price, “knowledge is power,” and tweens, in the age of Google, already know what everything costs and how to get the best deal.
And when it comes to promotion, “it becomes the dumbest idea ever,” Tapscott adds. “My clients say, ‘We are very customer-focused.’ For these kids, that’s a bad idea. You don’t want to focus on them—you want to engage them.”
Adds Rick Liebling, creative culturist at Y&R, New York, and father of two tween boys: “If you think of culture as a highway that we are all driving down, don’t try to get [tweens] to take an off-ramp and find your brand in the boondocks. [Put your product] right in the middle of the highway. Be right there.”
In short, today’s tweens demand a more personal, more tactile, truly up-close-and-in-person connection to their favorite brands.
Many marketers are getting it right. To launch Chobani’s new product for kids, agency Leo Burnett, New York, with support from Big Spaceship and Fleishman-Hillard, not only rolled out traditional TV spots and ads in Parenting and People but also kicked off a national, summer-long bus tour making stops at tween events like KidsFest San Diego this month and the Nottingham Kids Triathalon in Baltimore in August. Then, there’s the juggernaut known as Brand Bieber, which this month spawned its namesake’s new album as well as a fragrance dubbed Justin Bieber’s Girlfriend, backed by a $20 million marketing campaign whose centerpiece (naturally) is social media. (Bieber heralded news of the product to his 23 million Twitter followers.)
Call it mastering the art of tween-vertising. Or maybe, un-vertising.
“In this age range, girls don’t want to be hit over the head with advertising or sales messaging,” explains Carl Schwartz, vp, marketing at FashionPlaytes, a website that enables girls to design their own clothes. Girls, Schwartz and his colleagues have found, “don’t care about 20 percent off. But if they can help choose the color of next season’s line, that is unbelievably powerful to them. It makes it more real for them.”
(At least one agency grasps what tweens bring to the table. At the Cannes festival last week, JWT hosted the event Junior Worldmakers, highlighting the work of creative kids from around the globe—including a 12-year-old app designer—and underscoring what grown-up marketers can learn from them.)
There’s no doubting that the economic power and social connectedness of tweens have made them especially valuable to marketers—but the path to these consumers is also a minefield. Tweens have gone beyond nature and nurture to encompass another behavioral element—networking—and the comfort level today’s tween has with technology is unlike that of any previous generation. And yet, mature as they are, these are still just kids. The under-13 set remains barred from Facebook—for now anyway. The social network is reportedly exploring special accounts for tween users—albeit equipped with parental controls. Nonetheless, advocates of Internet safety for kids have their hackles up.
And it’s understandable considering that attempts to curb tweens’ activity online are spotty at best. The Tween Internet Safety Survey, commissioned by Cox Communications in partnership with the National Center for Missing & Exploited Children, whose results were released this month, reveals that while tween parents are doing a good job setting guidelines and restrictions for their kids’ online usage on home computers, only one in five parents use basic content control features on smartphones, tablets and game consoles.
Try as they might, it would appear adults have precious little hope of separating tweens from their beloved screens. As Tapscott puts it, “My generation surfs the Internet; this generation surfs their reality, and they look [at the world] through their screen.”
And, as Y&R’s Liebling points out, it doesn’t much matter which screen they’re looking at—be it on a television, a smartphone, a laptop, or all of the above. “My older son multi-screens. He’s playing on the Xbox Live with his friends, so it’s a game but also a communications tool. He’s got iPad with him, using it to check additional data on his game-playing or to chat with other friends … and he has his iPhone,” Liebling says.
With their attention pulled in so many directions, this demo is a particularly tough nut for marketers to crack, of course. Chalk it up to that millennial brain, “always looking for the next thing,” Yarrow says. “The word ‘trend’ was good enough 10 years ago. Now we say ‘trending.’ This is the absolute perfect example of how fast things move [for today’s tweens]. We can’t stay on something long enough to actually call it a trend.”
Along the way, the entire notion of a brand—and the consumer’s relationship with the brand—has changed. As Tapscott points out, “You aren’t going to manipulate these kids. You are going to be naked as a company, and you better get buff. If you say you have the best product, it better be the best. For kids, the brand is not an image or a promise—it’s a relationship built on trust.”
The Parenting Group’s Connery agrees. “If they don’t have a relationship [with a product or brand], it doesn’t mean anything to them,” she says. “They are very emotional consumers.”
And, as these are preteens, they can also be an unfocused, fickle lot.
As with generations before them, today’s tweens have a need for acceptance by their peers, but they also possess more independence than their predecessors, according to Yarrow. “They have more confidence in their own opinions,” she says.
In other words, once a tween has made up his mind about something, don’t expect him to stick to it.
Naturally, it is that fluid nature—along with all the other desirable tween traits, most notably their unprecedented economic power—that makes the demo an especially attractive one for marketers. He’s always open to new experiences, easily persuaded.
The flip side, of course, is that he can tire of your brand with lightning speed.
Liebling sees the point of view of your typical tween as: “If you don’t get me, I’ll do my own thing. If you can’t make a video that entertains me, no problem—I’ll make my own.”
And yes, they know how.


From Islands To Ecosystem: Connecting Social, Digital + Mobile

Monday, June 25, 2012


Screen shot 2012-06-25 at 5.10.06 PM
From Web And Desktop To Anytime, Anywhere.In the early stages of digital, businesses first dipped their toe on the Web by launching brochure like Websites which had to be located initially through a browser "URL" (WWW) followed quickly by search engines which organized the Web. Today, the Web and the digital landscape looks dramatically different compared to the Internet's frontier years. For starters, the Web has become mobile, with 1.2 billion of the world's population accessing the Web through a mobile browser. In addition, the internet is increasingly being accessed by tablet or mobile apps and aggregators such as Flipboard and Pulse. To add even more complexity to today's fragmented digital environment, social networks such as Facebook and Twitter have proven that a business must extend it's digital ecosystem into social spheres in order to remain relevant. Today’s digital ecosystem is composed of the following increasingly overlapping areas:
Owned:
These are the Websites, corporate blogs, intranets and extranets your business has full control over.
Paid:
These are media properties your business “purchases” in order to drive traffic and raise awareness.
Earned:
Properties which drive traffic/raise awareness but rely on organic distributions.
Social Networks:
Platforms where a business can build a social “embassy” (combines paid and earned tactics) that it partially controls.
Search Engines:
Primarily Google, Bing and regional search engines used to find information on the Web (Siri for mobile meets Ai).
Mobile:
Technology such as phones, tablets and the mobile social-digital behaviors they foster. 
In short, the Web era which was dominated primarily by stand alone slow moving Websites is gradually though systematically becoming a thing of the past,(this is why Facebook must master mobile). Today, a business must approach the Web from the standpoint of connecting its external and internal "digital ecosystem" which brings together "owned properties" such as websites and mobile apps with social "embassies" as well as a fleet of new platforms from third party providers such as customer reviews or popular social networks. Many businesses will face huge challenges in this area as their large global Website structures were built with dated legacy systems and not architected for the future state of digital ecosystems which the industry is moving toward.
Five Ways To Go From Digital Islands To Integrated EcosystemEnsuring that your business is building a digital ecosystem vs. disconnected "islands" means fixing the foundation while moving forward in areas where your business needs to be relevant (social and mobile). Media companies like The New York Times have begun to show the way here as they've had no choice but to optimize their content for a mobile, social, digital world. Professional organizations, brands and corporations are the next in line. The steps below are meant to provide high level guidance and is not comprehensive but designed to provide general guidance:
Perform A Digital Footprint AuditA digital footprint audit takes stock of all digital, social, and mobile assets (both external and internal) and evaluates them against a set of criterion which is customized for your business and industry. Digital properties should be looked at critically. Are their properties which are outdated or not optimized for search or mobile? Are there properties with unrealized potential? Are some properties being kept on life support when they should be put down? A digital footprint audit takes a wide look at everything your business has out on the digital space  and identifies gaps, issues and opportunities.
Implement A Content StrategyA comprehensive content audit should be performed to determine what content is valuable vs. what's not optimized for a social, mobile Web. A content audit compliments the digital footprint analysis and provides the roadmap for what content stays, what needs to be re-located and identifies gaps. From this, a content strategy should be developed aimed at producing optimized content for search, social sharing and mobile interactions.
Assess Signals Derived From Search And Social
A digital ecosystem is only as effective as it's ability to be found and it's relevancy to current conversations. A conversation assessment looks at what's being said about your business and relevant topics across the digital landscape. It also looks at how effective your digital ecosystem is in sending signals which are being shared across multiple social platforms. On the other side of the fence, a search audit looks to see if your properties are being found in search engines specifically guided by relevant terms critical to the business. Both exercises will provide clues to the question: "is my digital ecosystem both findable and shareable"?
Re-Assess Your InfrastructureLarge complex sites are never easy to maintain, update or evolve but this doesn't take away from the fact that they will need to become more effective at handling change faster. A comprehensive audit from an unbiased and qualified third party may uncover legacy issues rooted in IT which need to be addressed. Some issues may involve updating existing infrastructure and others could require a gradual overhaul of not only existing systems but also partners and vendors. In either scenario an exhaustive audit here would likely be the place to start. Without it, root issues will likely never be addressed no matter the quality of your digital strategy.
Evaluate Current Resources & ProcessesMoving from digital islands to a connected ecosystem means taking a look at your existing organizational design. A modern ecosystem requires staff and resources which can manage social properties, develop for mobile and produce valuable content which travels effortlessly across that ecosystem. An organizational process design exercise can be useful in documenting current state and visualizing future state providing a roadmap for how to navigate the changes needed in order to optimize the organization.
Ecosystems Take TimePlanning, building, maintaining and ensuring that you've grown a healthy and integrated digital ecosystem will not happen overnight. Be prepared for it to take time, resources and the stomach to deal with multiple stakeholders from marketing to IT to customer service. The above activities are more likely to be effective if approached globally but executed against with local and regional execution. Digital ecosystems for large businesses will also require the cooperation and coordination of multiple partners in order to realize the potential. The burden of this coordination will fall largely upon the organization driving the initiatives and it's key partners.

Wednesday, June 20, 2012

How to Get More Likes, Shares on Facebook

If you’re looking to get better engagement out of your Facebook posts, add more pictures and start speaking in the first person.
Social media data expert Dan Zarrella — who tracked and analyzed more than 1.3 million posts from the 10,000 most-Liked Facebook pages — has released details about which posts get the most likes, shares and comments on Facebook, from post type and length to the best time of day to add updates.
Photos bring in the highest number of engagement across the board, followed by text and video, according to Zarrella. News links bring in the least numbers of likes, shares and comments.
Meanwhile, posts with a high number of self-referential words such as “I” and “me” get more likes — a tactic that doesn’t work well on Twitter.
SEE ALSO: The Best and Worst Times to Share on Facebook, Twitter
“Overall, the best strategy for Facebook, as well as all kinds of social media marketing, is to create a lot of interesting content and share it,” Zarrella told Mashable. “On Facebook, visual content does especially well. It’s also important to be passionate, not neutral.”
This means that both positive and negative posts tend to do well with engagement.
Timing is also key. Updates posted later in the day (Eastern Time) bring in more shares and Likes, but they tend to peak around 8 p.m. Shares trickle off around the end of the work day (6 p.m.).
“Publish when others aren’t, such as later in the day and on the weekends,” Zarrella advised.
For example, Facebook posts that go up on Saturdays and Sundays tend to get more Likes than those during the week. Similar to Twitter engagement, Facebook posts do better earlier in the week than later: Thursday is the least active day for Likes.
People also tend to be active throughout the week in the early hours of the day (5 a.m. ET) and during lunchtime (12 p.m. ET).
For a full look at which posts do best, check out the infographic below or sign up for Zarrella’s free marketing webinar.
What seems to be working best for you? Let us know in the comments.
Facebook Infographic

Monday, June 18, 2012

Pinterest Has Users, Fancy Has a Business Model

Pinterest Has Users, Fancy Has a Business Model

Social discovery site is expanding its e-commerce play
  • June 18 2012
Fancy founder Einhorn
Advertisement
Fancy isn't Pinterest. Not even close. But Pinterest may start looking to emulate its business model.
A startup Web application that blends bookmarking and shopping, Fancy just recently crossed the million-user mark. That's impressive, but Pinterest is about 10 times larger. At their most basic level, both social content-discovery sites have users record stuff they like. On Pinterest, those records take the form of scrapbook-like pinboards with titles like “Products I Love” or “Places I’d Like to Go;” on Fancy they’re lists like “Sports & Outdoors” or “Gadgets” that can then be compiled into a user’s catalog.
However, while Pinterest is a hot topic in marketing circles, “Fancy is not even being discussed” because it lacks scale, said Scott Gillum, president of the digital agency Gyro’s D.C. office.
Brands gravitate to Pinterest because its users’ pinboards represent purchase intent, but in February Fancy closed the loop by actually letting its users buy the products they "fancied" (its version of the pin, or like), and rolled out the e-commerce capability to its iPhone app a few weeks ago. “We’re a straight shopping utility," said Fancy founder Joe Einhorn, who noted that Fancy receives a 10 percent of every sale made on the platform.
That's a lot further along than Pinterest's nascent business model, despite the platform's seemingly perfect fit with e-commerce. (To be fair, Pinterest has a business model through its use of affiliate links, but doesn't like talking about it.)
For now, Fancy is most useful to trendsetters and tastemakers, particulary those with disposable income. Lots of it. Its bread and butter merchants skew super high-end. One of its investors is French fashion giant PPR, home to pricey brands like Gucci, Stella McCartney and Yves Saint Laurent.
Einhorn said the plan is for Fancy to start by aiming high, then eventually broadening its base to everyday products because, as he explained, “When you’re at the bottom of the brand pyramid selling overstock crap, it’s really tough to get up to the top.”
Of course, it takes more than gravity to get to the bottom or even the middle. Regular folks won’t likely scour Fancy daily to buy items like a $1,595 bejeweled collared shirt. But Einhorn’s hope is that they could fancy an American Apparel shirt and receive a notification from Fancy if American Apparel ever starts selling the tee on the site.
“The future is, I’m going to declare as a consumer my position, and merchants and brands are going to have access to that data. And it’s going to be up to them how they want to harness it,” Einhorn said. Fancy’s e-commerce strategy—underscored by its Tumblr-esque site design—is “serendipity versus search,” he said.
But Einhorn doesn’t want to limit that serendipity to just what users find on its site or app. Later this year, Fancy hopes to roll out the ability for its app users to snap a photo of a product—be it in a store or worn by someone on the street—and then have Fancy’s image-recognition technology determine that the item’s not only on Fancy but available for purchase. If successful, that offline-online commerce connection could set Fancy up for Einhorn’s wild ambition.
“A year from now, we want to be thought of by consumers the way they think of Amazon, but we want to even be better,” said Einhorn. “I think Amazon is always going to be great for buying toilet paper, paper towels, roach traps, garden equipment and shit like that, but we want to be the Amazon of everything cool that you didn’t know about, and we want to matter as much to consumers as Amazon does today.” For that to happen, though, Fancy will need to scale faster than its current growth rate of 10,000 new users per day.