Pinterest made a new ad deal with Google as part of its plan to make more money from ads. Amazon made a deal with Pinterest last year for a number of years, and Google is the first third-party ad partner for the social network.
On its earnings call for Q4 2023, the company talked about its relationship with Google. The call came after the company reported results that were worse than expected by analysts. During that time, Pinterest made $981 million, which is 12% more than the same time last year. While the number of monthly active users rose by 11% year over year to 498 million.
Pinterest’s stock dropped almost 28% because of lower-than-expected sales, but it rose again after CEO Bill Ready announced the deal with Google. He said that the new ad connection has been going live for a few weeks and that the company is already seeing good results.
“This partnership will focus on making money in a few of our international markets that aren’t making money yet by letting ads run on Pinterest through Google’s Ad Manager.” It’s been live for a few weeks now, and things are starting to pick up. We expected third-party ad demand to grow, and it has,” he said.
Ready said that 80% of Pinterest’s users are not in the U.S., but they only bring in 20% of the company’s income. He said that working with Google would help raise the average amount of money made by each user in foreign markets.
Getting More People
The CEO of Pinterest talked about how they would use AI and new forms to get more people to use the site and interact with it. He said that the company made the collage feature available to all iOS users around the world. This feature lets users use stickers and other items to make a new picture. The company said that 75% of schools have a products pin that can be bought, but it didn’t say how many people actually bought something.
The company also released an auto-organizing feature for users last year. This feature looks for pins that are related and encourages users to make boards. The tool made people 30% more likely to make boards on the social network.
Ready also said that the company’s generative AI-based search guides help people narrow down their searches and get closer to “the point of action or purchase.”
In November of last year, Pinterest began testing a new tool that would add body type groups to search results to make them more open to everyone.
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