Wayfair pilots data ‘clean room’ with Pinterest
Wayfair is testing a new method of tracking ad performance on Pinterest.
The omnichannel home furnishings retailer is partnering with Pinterest and data management platform LiveRamp to participate in a pilot of “clean room” software that keeps data private and provides aggregated insight into ad performance.
In this pilot, Wayfair will get aggregated insight into performance of its ads on Pinterest. The LiveRamp data collaboration platform is designed to ensure neither Wayfair nor Pinterest has access to the other party’s identifiable customer data.
Wayfair will gain visbility into key metrics like return on ad spend (ROAS), as well as the ability to report iROAS by measuring incrementality. Pinterest's integration with LiveRamp will provide a protected, third-party digital space where Wayfair can combine its first-party data and Pinterest platform data in a secure environment.
“Holistically understanding our consumer is as important as ever, and we are committed to evolving how we gain insight and measure incrementality in environments like clean rooms to ensure that we’re delivering the best possible shopping experience in Home,” said Bob Sherwin, chief marketing officer, Wayfair. “Pinterest has been a strong partner as we continuously explore new ways to future-proof our business while maintaining the trust and privacy of our consumers.”
Wayfair annual loss hits $1.2 billion
Wayfair is testing enhanced digital ad tracking with Pinterest as it comes off a difficult fourth quarter and fiscal year. The online home furnishings giant posted a net loss for the quarter ended Dec.31, compared with a loss of $202 million in the year-ago quarter.
For the full year, Wayfair reported a net loss of $1.3 billion compared with a loss of $131 million in 2021. In addition, net revenue, orders delivered and customer base all declined, while advertising expenses grew. In one good piece of financial news, average order value rose year-over-year.
Wayfair’s brands include Wayfair, Joss & Main, AllModern, Birch Lane, Perigold, and Wayfair Professional. The company generated $12.2 billion in net revenue for full year 2022 and is headquartered in Boston, with operations throughout North America and Europe.
Albertson’s partners with Pinterest, LiveRamp
In January 2023, grocery conglomerate Albertsons Companies Inc. began partnering with Pinterest and LiveRamp to pilot clean room technology with select advertising partners on its Albertsons Media Collective retail media network. This collaboration will be an ongoing initiative to deliver closed-loop reporting for brands that participate in the Albertsons Media Collective.
To start, the companies launched a winter healthy eating campaign, measuring digital advertising metrics like ROAS. Pinterest is planning to continue testing clean rooms with additional partners.