How does Pinterest charge advertisers for ad placements?

Pinterest charges advertisers for ad placements based on the bidding model selected for their campaigns. Pinterest offers two primary bidding options: Cost per Click (CPC) and Cost per Thousand Impressions (CPM). Here's how Pinterest charges advertisers for ad placements under each bidding model:

1. **Cost per Click (CPC)**:
   - With CPC bidding, advertisers only pay when users click on their ads.
   - Advertisers specify a maximum bid amount they're willing to pay for each click on their ads.
   - Pinterest charges advertisers each time a user clicks on their ad, and the cost is determined by the actual number of clicks generated.
   - The CPC is calculated as the total amount spent divided by the total number of clicks generated by the ad campaign.

2. **Cost per Thousand Impressions (CPM)**:
   - With CPM bidding, advertisers pay for every thousand impressions (views) of their ads, regardless of whether users interact with the ad.
   - Advertisers specify a maximum bid amount they're willing to pay for every thousand impressions of their ads.
   - Pinterest charges advertisers based on the number of impressions their ads receive, with the cost calculated as the bid amount multiplied by the number of thousands of impressions.
   - The CPM is calculated as the total amount spent divided by the total number of thousands of impressions generated by the ad campaign.

In both bidding models, Pinterest uses an auction-based system to determine which ads to display to users. Advertisers compete for ad placements based on their bid amounts, ad relevance, and other factors. The winning ads are displayed to users, and advertisers are charged based on the selected bidding model (CPC or CPM) and the actual performance of their ad campaigns.

Overall, Pinterest charges advertisers for ad placements based on the bidding model selected (CPC or CPM) and the actual user interactions or impressions generated by their ads. Advertisers have control over their bidding strategy, budget allocation, and ad targeting to optimize their ad performance and achieve their advertising goals on the platform.