Seeking a financial shot in the arm, Pinterest has announced a new advertising partnership with Google.
This marks Google as the second major player, following Amazon, to join Pinterest’s third-party ad network.
While Pinterest boasts 498 million monthly users, a respectable 11% year-on-year growth, its Q4 2023 revenue fell short of expectations, causing initial stock jitters.
“However, CEO Bill Ready’s announcement of the Google deal sent shockwaves of optimism, with the stock recovering swiftly,” reports state.
Google’s Ad Manager will be instrumental in monetizing Pinterest’s vast international user base, currently untapped in terms of ad revenue.
Despite representing 80% of Pinterest’s users, this international audience contributes only 20% of revenue. The partnership aims to bridge this gap, boosting the average revenue per user in these markets.
Revenue isn’t the only focus. Pinterest is also doubling down on user engagement through innovative features.
The new “collage” tool empowers users to unleash their creativity, while the auto-organizing feature streamlines board creation, leading to a 30% increase.
The firm claims its Artificial Intelligence (AI) is also getting smarter.
“AI-powered search guides help users refine their queries, leading them directly to purchase-worthy content.”
Additionally, a new inclusivity tool is being tested, incorporating a diverse range of body types in search results.