Pinterest is a social media platform that functions like a virtual pin-board. It lets users save and pin images of things like recipes, clothing, home and style ideas, and more. The New York Stock Exchange is where Pinterest stock is traded. In this article of howdiscover.com, we check how Pinterest makes money.
Over 300 million people worldwide use the social media platform Pinterest (PINS) on a monthly basis to share and save images, links, and other content known as “pins.” The platform makes it easier for people to share ideas and get ideas for everything from home decor to teaching methods for elementary school teachers.
The headquarters of Pinterest remain in San Francisco, where it was established in 2009. In 2019, the business went public with a $10 billion valuation.
Over the years, Pinterest has acquired a number of startups, including:
- The Livestar an app that lets you connect with people whose tastes are similar to yours.
- • Flesky is: a keyboard that makes it easier to type quickly on smartphones.
- • JellyHQ: a search engine that facilitates collaboration among distributed teams.
- • Instapaper: a web application that lets users save webpages for later reading.
- •Tote: an app for social shopping.
- •URX: an advertising technology company.
Many of the businesses they bought are no longer in business.
Note: Ben Silbermann, Evan Sharp, and Paul Sciarra established Pinterest. While Silvermann and Sharp are still employed by Pinterest, Sciarra left the company in 2012.
The Business model of Pinterest
Pinterest sees itself as a search engine and an app for sharing photos. The sale of specialized digital ads is how the business makes money.
Pinterest’s business model is not based on sharing photos or videos with friends and followers, unlike many other photo-sharing social media sites, such as Instagram and Snapchat.
Pinterest, on the other hand, describes itself as a “discovery service” that assists users in curating a virtual vision board.
Pins of various types are available, including video pins, product pins, collections, and standard image pins. Planning weddings, home renovations, and week’s meals are all common uses for Pinterest.
The majority of Pinterest’s revenue comes from advertising sales. It sells ads through an expense for every click and cost per thousand impressions model yet it computes estimating in view of commitment, implying that they possibly charge sponsors when a client draws in with an advanced pin. Additionally, advertisers can target users with ads based on their interests.
For instance, a paint company can target users who are planning a renovation, while a bridal dress company can target ads to users who are actively planning weddings. Companies seeking a higher return on their advertising investment will find this type of advertising appealing.
Despite the fact that Instagram and Snapchat are also photo-sharing social media platforms, there are no companies with a business model that is comparable to that of Pinterest.
Houzz (HOUZ), a home improvement platform, and Tastemade, a food and recipe website, are its closest rivals.
Takeaway: Every month, over 335 million people use Pinterest, with two thirds of them being women.
How Pinterest Profits: 5 Ways
Advertising is Pinterest’s primary source of revenue. On their platform, they distinguish between two primary types of advertising: performance marketing and brand marketing.
1. Brand advertisement
An advertiser optimizes their campaign around factors like impressions or views in brand ads. Companies with a focus on brand recognition will benefit most from these advertisements. They can be saved to pinboards, appear in a pinner’s home feed, and look like organic pins on search results pages.
2. Performance advertisement
Performance advertising is the other way Pinterest makes money. An advertiser optimizes a campaign for engagement-focused goals like clicks or conversion events in these ads. These pins also appear in feeds and search results pages and have the same appearance as organic pins. Additionally, they can be saved to a pinboard.
3. Collaborations with Partners
Pinterest has a carefully selected list of partners who assist businesses with their advertising strategy, audience targeting, content, creative, performance measurement, and purchasing experience. These businesses include:
- • Shopify (SHOP)
- • Bluxome.co
- • Neustar
- • Vidmob
- • Smartly.io
Pinterest probably gets referral bonuses from accomplices.
Pins on Pinterest can also be monetized through the “Buy it” option, which lets users buy products pinned to their boards directly from partner merchants and earn commissions for those sales.
4. Collaborations with Influencers
By including brand partnerships, affiliate links, and tagging shoppable products, influencers can monetize their content on Pinterest.
They also provide influencers with paid content creation opportunities through what they refer to as “Creator Rewards,” which permit businesses to collaborate with Influencers on the platform.
These partnerships generate a portion of Pinterest’s revenue.
5. Acquired Companies
Since its inception, Pinterest has acquired a number of businesses, some of which may continue to generate revenue.
In any case, the greater part of those organizations are never again effectively carrying on with work as their ownership were ‘acquihires,’ and that implies Pinterest got them fundamentally for the group that made the company so they could work at Pinterest.
Pinterest’s sale of Instapaper, the company is still in operation.
Pinterest’s user base has grown over time, creating a niche that lets it avoid direct competition with Facebook and other social media platforms. Compared to its rivals, Pinterest’s leadership has taken a much more cautious approach to growth. Since the company went public, it has increased spending on sales, marketing, and R&D, resulting in as an increase in revenue.
Being able to access international markets, where Pinterest currently has little influence, represents a significant future opportunity. as well as continuing to develop advertising tools for advertisers, which include video capabilities.
How much money does Pinterest Pay?
Is it possible to be paid to use Pinterest? Pinterest does not pay you to use its platform.
But you can get paid to be featured and help grow the businesses of bloggers and other business owners on Pinterest. The majority of Pinterest virtual assistants earn $500 per client per month or more.