The insight: Pinterest is making a bigger push for consumer packaged goods (CPG) dollars with its latest ad format. The company is introducing “where to buy” links to make standard product image ads shoppable, allowing CPG advertisers to direct shoppers to preferred retailers where items are in stock and receive valuable purchase intent data.

The strategy: While food and beverage is one of Pinterest’s strongest endemic categories, the company has historically struggled to drive direct sales—and consequently engage CPG advertisers. But that is beginning to change, thanks in large part to Pinterest’s partnership with Instacart.

• That deal has allowed Pinterest to introduce shoppable ads across a wider range of products, while giving advertisers access to Instacart’s valuable first-party data and a better shot at reaching high-intent shoppers.
• The company expects to roll out more add-to-cart and purchase features for CPG advertisers in the next few months, with the goal of driving more sales to partner retailers.

Our take: Pinterest’s play for CPG ad dollars could prove profitable, particularly as companies like Kraft Heinz and Unilever ramp up marketing to win over wary consumers. The company’s young user base, ability to inspire consumers to take action, and increasing role in product discovery all position it to benefit as advertisers focus on channels most likely to drive sales.