Advertising revenue from Pinterest reach $3.6 billion by 2024, according to recent research by Warc Media. The platform is going through a positive moment of growth, both in terms of advertising investment and monthly active users, thanks, in part, to the incorporation of purchasing functionalities and the adoption of artificial intelligence.
The consulting firm has analyzed the opportunities and challenges of the social network in its report “Platform Insights” which, above all, highlights the evolution experienced by Pinterest. This has gone from serving as a source of inspiration in the initial phases of the conversion funnel to amassing an audience with high commercial intent. The strategic movements of the platform towards e-commerce and experience have contributed to improving its competitive positioning.
Thus, according to Warc, the interannual growth rate of advertising revenue of Pinterest in the first quarter of 2024 has stood at 23%, only surpassed by Meta and Amazon among big technology platforms. Its advertising revenue is expected to reach $3.58 billion this year, which would result in a growth rate of 17.3%, and in 2025 it is expected to reach $4.2 billion (17.1%).
This is data that extends the growth path of Pinterest, which in the fourth quarter of last year would have almost doubled the growth rate in advertising revenue. These are figures resulting, as indicated by the consultancy, from a monetization strategy that is based on the incorporation of new formats and products to boost user activity and, therefore, enhance advertising.
The analysis indicates that Pinterest’s growth is most notable at the bottom of the funnel, and especially in the United States, among what the platform itself defines as the “large and sophisticated advertisers”. Alludes to brands that quickly adopt new ones advertising tools and those from categories such as technology or retail. Pinterest will reach $575 million worldwide in 2025.
Beyond revenue, Warc data indicates that Pinterest is also growing in users. Furthermore, he points out that the Monthly active users exceeded 500 million in the first quarter of this year. A considerable portion of them (40%) also belong to Generation Z, which is now Pinterest’s fastest-growing demographic. So much so that, according to data from Qustodio, Pinterest was used more than Instagram in the United States, United Kingdom, Australia and France last year by teenagers.
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Pinterest is primarily known for its brand discovery and product inspiration, but the platform is now turning to drive action within its ecosystem. 55% of users perceive Pinterest as a “place to shop”, so the social network is betting on a more commercial facet.
Furthermore, Warc’s analysis indicates that Pinterest is a suitable platform for advertising performance. Thus, he points out that the cost per acquisition has decreased by 60% year-on-year, based on data from Nest Commerce; while its conversion rate is growing.
However, performance varies depending onn the format. From the platform they share that brands that use videos in their Collection ads obtain a 44% higher ROAS (Return on Advertising Spend) compared to static Collection ads.
The advertising perception on the platform is also going through a positive moment. Kantar data collected in the “Media Reactions 2023” report indicates an improvement in perception between 2021 and 2023, as users are less likely to view ads as negative compared to other platforms. Pinterest ranked as the second most preferred advertising platform for American consumers, with ads considered “very relevant and useful.”
