HomeSocial Media MarketingPinterest Adds More Users in Q4, Announces New Google Ad Partnership

Pinterest Adds More Users in Q4, Announces New Google Ad Partnership

Pinterest added extra customers once more in This fall, whereas additionally unveiling a brand new advert partnership with Google, which can assist to spice up its monetization potential. However its future prospects may be impacted by the identical. Right here’s a have a look at the newest efficiency replace from the app.

First off, on customers. Pinterest added 16 million extra month-to-month energetic customers in This fall, taking it as much as 498 MAU.

Which continues the platform’s optimistic progress, transferring in the precise course as soon as once more after the COVID bump again in 2021.

Amid the worldwide lockdowns, which pressured extra individuals into on-line procuring, Pinterest noticed a surge in exercise, rising to 478 million customers, earlier than dropping that momentum, and seeing its viewers shrink again down in consequence.

That, logically, made market analysts nervous, however now, Pinterest has exceeded that spike, and is continuous to herald extra customers, every armed with procuring intent, each quarter.

In actual fact, that’s now seven consecutive quarters of optimistic viewers progress, which is a robust outcome, although very like Snapchat, additionally it is price highlighting the place that progress is coming from, and the way that would relate to its broader income efficiency.

As you’ll be able to see within the above chart, whereas Pinterest did add 16 million extra customers general, it solely added 1,000,000 in North America, its key income market.

Pinterest Q4 2023

The optimistic is that it added extra in EU, the place its progress has fluctuated, and even declined at one level over the previous 12 months, whereas it’s additionally nonetheless including extra customers in different areas, with Brazil and Mexico being key progress areas for the app.

It’s additionally price noting that whereas its EU income per consumer continues to be nowhere near what it generates from US customers, it did enhance by 23% year-over-year for the quarter, and 15% in complete for the 12 months.

So whereas Pinterest does must do extra to monetize this broader viewers, issues are not less than trending in the precise course, although vacation gross sales figures can skew this considerably, making it troublesome to get an correct learn on relative efficiency.

However proper now, the numbers are all transferring up, which can be true on the general income entrance.

Pinterest Q4 2023

As you’ll be able to see on this chart, Pinterest generated $981 million in This fall, taking its complete over $3 billion for the 12 months. Which, general, got here in decrease than anticipated, which noticed shares within the firm decline in after-hours buying and selling in consequence, although Pinterest CEO Invoice Prepared did additionally announce a doubtlessly attention-grabbing new partnership with Google, which helped to lift extra curiosity in its future prospects.

On its This fall earnings name, Prepared mentioned that Pinterest has enacted a 3rd social gathering app integration with Google, which can see Pinterest host adverts powered by Google, offering one other strategy to deliver extra shoppable content material into the app. 

Prepared, who as soon as headed Google’s commerce division, says that the brand new integration will assist to enhance Pinterest’s monetization processes, and maximize its income potential, particularly in markets outdoors the US, the place it’s but to construct out its advert instruments.

Nonetheless, Pinterest’s ahead estimates had been comparatively low. For Q1 2024, Pinterest says that it expects income “to be within the vary of $690 million to $705 million”, which might be a year-over-year enchancment, however a decline on its general momentum.

Pinterest stays an attention-grabbing prospect, because it continues so as to add extra customers, and refine its give attention to digital procuring experiences. The advantage of Pinterest is precisely that, nearly all of its customers come to the platform with procuring intent, however on the similar time, it stays in competitors with greater marketplaces, like Google and Amazon (whom it additionally has a 3rd social gathering advert partnership with), which might in the end restrict its potential.

As a result of whereas these platforms are joyful to make use of Pinterest as a car for his or her promotions, that additionally reduces the direct gross sales potential for Pinterest itself. Getting cash from in-stream procuring might be a much bigger income driver for the app, however as an alternative, it’s seeking to facilitate different buy processes, which can nonetheless deliver in additional advert income, however might in the end go towards its longer-term ambitions.    

Clearly, Pinterest doesn’t see it that method, and it’s hoping that it may possibly generate sufficient cash from these integrations to maximise its potential. But it surely does look like it is partnering with the enemy to some extent, which can not in the end be to its profit.

Both method, with a captive viewers of 490 million potential buyers, it must be a consideration for all manufacturers, at least to know what persons are partaking with in your area of interest.


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