Pinterest partners with Google to boost revenue.
In a bid to increase its revenue, Pinterest has forged a new advertising partnership with Google.
To bolster its advertising revenue, Pinterest has disclosed a fresh advertising collaboration with Google. This collaboration marks Google as the second external advertising partner for the social platform, with Amazon being the first through their multiyear agreement with Pinterest last year.
In the Q4 2023 earnings call, the company deliberated on its collaboration with Google and presented financial results that did not meet the expectations set by analysts. Pinterest achieved a revenue of $981 million during this period, indicating a 12% year-on-year growth. Furthermore, the platform observed a rise in its monthly active users, reaching 498 million, reflecting an 11% year-on-year increase.
Despite a significant drop of approximately 28% in Pinterest’s stock due to a revenue miss, it made a remarkable recovery after CEO Bill Ready announced the Google deal. Ready emphasized that the company had initiated the rollout of the new advertising integration a few weeks prior, and it is already producing favorable results.
In order to increase the average revenue per user in global markets, Ready emphasized the significance of the Google partnership. Notably, Ready pointed out that while 80% of Pinterest users are international, they contribute only 20% of the revenue.
In addition to that, the CEO delved into the utilization of AI and novel formats to enrich user engagement and extend the user base. Specifically, he shed light on the global implementation of the collage feature on iOS, which enables users to create new images using stickers and objects. Furthermore, Pinterest disclosed that 75% of colleges feature product pins that can be purchased, although the exact conversion statistics were not disclosed.
Conclusion
In the year prior, the company unveiled an advanced auto-organizing feature that encouraged users to create boards by recognizing pins with resemblances. This groundbreaking addition resulted in a substantial 30% increase in the number of boards created on the platform.