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Pinterest announces new advertising deal with Google to reach 500 million MAUs

TechBrunchBy TechBrunchFebruary 9, 20242 Mins Read
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Pinterest has announced a new advertising deal with Google, aiming to increase advertising revenue. Google is the social platform's second third-party advertising partner, following Amazon's multi-year deal with Pinterest last year.

The company talked about its partnership with Google during its fourth-quarter 2023 earnings call, announcing results that were lower than analysts expected. His Pinterest revenue for the same period was $981 million, an increase of 12% year over year. Meanwhile, monthly active users jumped to his 498 million, an 11% year-over-year increase.

Pinterest's stock price fell nearly 28% after lower-than-expected revenue, but rebounded after CEO Bill Ready announced a partnership with Google. 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 international markets that are currently unmonetized by enabling ads to be served on Pinterest via Google's Ad Manager. Live a few weeks ago “We've started delivering and the momentum is starting to pick up steam. Third-party advertising demand is growing as expected,” he said.

Ready pointed out that Pinterest has 80% of its users outside the United States, but only accounts for 20% of its revenue. He said the partnership with Google will lead to an increase in average revenue per user in international markets.

Increase in viewership

Pinterest's CEO talks about leveraging AI and new formats to build user base and engagement. He said the company has rolled out the Collage feature, which allows users to create new images using stickers and objects, to all iOS users worldwide. The company said 75% of colleges have shoppable product pins, but declined to say anything about conversion numbers.

Last year, the company also released an auto-organize feature for users that recognizes similar Pins and prompts users to create boards. This feature has resulted in a 30% increase in boards created on social platforms.

Ready also said the company's AI-based generative search guides help users hone their queries and get them closer to the “point of action or purchase.”

Last November, Pinterest began experimenting with a new tool that incorporates a range of body types into searches to make search results more inclusive.



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