Pinterest Strikes Ad Partnership with Google as Monthly Active Users Near 500 Million

Pinterest has announced a groundbreaking ad alliance with Google, marking a significant stride in its bid to bolster advertising revenue. This partnership with Google, the platform’s second third-party ad collaborator following last year’s multiyear pact with Amazon, was revealed during the Q4 2023 earnings call, where Pinterest posted results slightly below analyst forecasts. Despite revenue for the period standing at $981 million with a 12% year-on-year growth and monthly active users soaring to 498 million, marking an 11% year-on-year growth, Pinterest’s stock saw a dip of nearly 28% initially due to the revenue shortfall. However, CEO Bill Ready’s revelation of the Google deal helped in the stock’s recovery. He shared that the rollout of the new ad integration had commenced a few weeks ago, yielding positive outcomes already.

“This partnership aims to monetize several of our currently untapped international markets by facilitating ad placement on Pinterest through Google’s Ad Manager. We’ve kicked off a couple of weeks ago, and the momentum is building up. We’re witnessing the anticipated scaling of third-party ad demand,” remarked Ready.

Highlighting that 80% of Pinterest users hail from outside the U.S., yet they only contribute to 20% of the revenue, Ready expressed confidence in the Google collaboration’s potential to elevate the average revenue per user in international markets.

Expanding Audiences: Ready delved into the platform’s strategy of leveraging AI and novel formats to augment user engagement and growth. He revealed the global rollout of the collage feature, empowering iOS users to craft new images using stickers and objects. Although 75% of colleges feature a shoppable product pin, conversion metrics weren’t disclosed.

Last year, Pinterest unveiled an auto-organizing tool that identifies similar pins and prompts users to create boards, resulting in a remarkable 30% spike in board creation.

The CEO also shed light on the company’s generative AI-driven search guides, designed to refine user queries and guide them towards actionable or purchase-oriented results.

In November, Pinterest initiated trials of a pioneering tool to integrate body type ranges in searches, aligning with its commitment to inclusivity in search outcomes.

WexPhones
Logo