Pinterest announces new advertising deal with Google as it nears 500 million MAU

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Pinterest has announced a new advertising deal with Google as the company aims to increase its advertising revenue. Google is the social platform’s second third-party advertising partner after Amazon signed a multi-year deal with Pinterest last year.

The company discussed the partnership with Google during the fourth quarter 2023 earnings call, where it reported results below analyst expectations. Pinterest’s revenue for the period was $981 million, growing 12% year-over-year. While monthly active users jumped to 498 million, growing 11% year-on-year.

Pinterest stock fell nearly 28% on lower-than-expected revenue, but recovered after CEO Bill Ready announced the Google deal. He said the company started rolling out the new ad integration a few weeks ago and is already seeing positive results.

“This partnership will focus on monetizing several of our currently non-monetized international markets by enabling ads to be served on Pinterest through Google’s Ad Manager. We launched live a few weeks ago and it’s starting to gain momentum. Demand for third-party advertising is increasing as we expected,” he said.

Ready noted that Pinterest has 80% of users outside the United States, but they only account for 20% of revenue. He said the partnership with Google would help increase average revenue per user in international markets.

Growing audiences

Pinterest CEO spoke about leveraging AI and new formats to grow user base and engagement. He said the company deployed the paste functionality, which allows users to use stickers and objects to create a new image, for all iOS users around the world. The company said 75% of colleges have a purchasable product pin, but it said nothing about conversion numbers.

Last year, the company also launched an auto-organize feature for users, which recognizes similar pins and prompts users to create boards. This feature led to a 30% increase in the number of boards created on the social platform.

Ready also said the company’s AI-powered generative search guides help users refine their queries and move them closer to the “action or purchase point.”

Last November, Pinterest began experimenting with a new tool for integrate ranges of body types in the search to make the results more inclusive.

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