Pinterest is an ever-growing digital pinboard and mobile application platform launched in 2010. It enables users to organically share, search and save content such as images, GIFs, videos, stories and more directly from the app itself or a website they choose. Since its launch, Pinterest has gained global attention with exponential international growth.
Currently, Pinterest has 425 million active monthly users across international markets including the US (87 million), France (17 million), India (13 million) and UK (10 million). Further analysis shows that two out of every three new Pinterest users come from outside the US, demonstrating the enormous opportunity for long-term success.
Pinterest’s worldwide presence has been achieved through strategic partnerships with existing social media titans — including Twitter — allowing anyone with a profile on these networks access to content hosted on Pinterest. The company is also embarking on several localised campaigns to build international brand awareness among vast demographics and highlight successes of local creators from all corners of the world. They have included sponsored TV adverts in Japan featuring meteorologist Makiko Hattori discussing her love for weather-related pins and launching ‘Pin of the Day’ campaigns across Europe to celebrate different cultures day by day. This is alongside its commitment to providing localised support for non-English languages such as Chinese (Simplified & Traditional), French, German, Italian and Spanish.
Overview of Pinterest
Pinterest is an online platform businessmen and individuals use to share and discover new interests and images. Launched in 2010, Pinterest’s main purpose was to provide users with a simple, yet beautiful way to curate, plan and share the latest trends, ideas and inspirations.
With almost 300 million active users in over 200 countries worldwide, Pinterest has become one of the most influential global platforms for developers, entrepreneurs and businesses.
History of Pinterest
Pinterest was founded on December 1, 2009 in Palo Alto, California by founder and CEO Ben Silbermann. He and two co-founders grew the company from a social bookmarking site to one focused on image sharing. Since its inception, over 200 million people have signed up for Pinterest accounts.
Since its launch in 2010, Pinterest has experienced strong international growth. In 2018 alone it had over 250 million monthly active users worldwide, with more than 80% of those outside the United States. This global reach has allowed brands to tap into international markets and use the platform to reach new audiences worldwide.
At the same time there has been significant investment in infrastructure that helps power a myriad of new features on the platform including personalization engines, content recommendations and advertising services. These investments have improved search capabilities and better content engagement for marketers looking to build customer relationships on this platform.
Pinterest is continuing to expand their presence around the globe as they strive to keep up with growing demand from users abroad. With its presence solidified in more than 170 countries across six continents it looks like Pinterest should continue to ride its wave of success in 2019 and beyond!
Overview of the company
Pinterest is a visual search and discovery platform that helps people find ideas for their everyday life. It largely works because of user’s either pins or boards, which are collections of individual pins that the user has pinned. Users can upload and save content from any website using the Pin It button or the Pinterest bookmarklet, and then organise their activities through collections called boards.
Pinterest was founded in 2010 by Ben Silbermann, Evan Sharp, Paul Sciarra and is headquartered in San Francisco, California. As of 2020, it had 290 million monthly active users worldwide, an increase of 36% yearly (YoY). Its app is also available on iOS and Android devices and on desktop web versions with additional capabilities. It also introduced a browser extension called the Pinterest Save Button, which lets people save online content into boards directly from their browser’s address bar. Moreover it has a business-oriented visual marketing product, called Promoted Pins, that allows companies to market their services or products organically with both standard and promoted visuals.
Internationally it launched its language version in France in 2011. Since then it has become available in more than 28 languages worldwide including Canada, Australia, the United Kingdom and more recently India & Japan among others. Pinterest has done a great job of enabling localization for its content offering on both mobile App Stores and desktop web versions by providing culturalized visuals with board titles & description in different languages to make its platform more accessible to consumers from diverse backgrounds & cultures worldwide. In addition to this have also organised events like workshops for global leaders & influencers to create meaningful connections with Pinners across markets around the world for community development outside the US market
International Growth of Pinterest
Despite the pandemic’s economic contraction, social media giant Pinterest has achieved remarkable success in its international markets. Its third-quarter earnings report showed that its revenue beat analyst expectations, driven mainly by its international expansion.
With its share price soaring, let’s look at how Pinterest has managed to break new ground in international markets.
Expansion of Pinterest into international markets
Since its launch in 2010, Pinterest has quickly become a worldwide phenomenon and is now available in over 33 countries. The company has redefined how people discover and shop for products worldwide through thoughtful localization, engaging media partnerships, strategic acquisitions, and robust engineering investments.
This international growth has transformed Pinterest from a primarily US-centric platform to one that serves millions of users worldwide. The company recently celebrated its 10th anniversary and strives for global expansion. For example, the platform introduced a dedicated Arabic section optimised for Arabic-language users in Middle East and North Africa (MENA) this year. Additionally, an entry into India this past August was announced to leverage the country’s strong retail trajectory due to changes in consumer behaviour related to COVID-19.
Using regional language support and relevant local partnerships such as media & advertising opportunities, Pinterest’s international growth weaves together platforms’ existing global user base with localised app experiences. Hence, shoppers can discover products they’ll love no matter where they reside – making it easier than ever before to go from inspiration curation to purchasing products they enjoy while enabling retailers of all sizes reach new destination markets.
Impact of international growth on the company
The international growth of Pinterest has had a great impact on the company. In the US, Pinterest is used by over 140 million users, making up around 66% of their total user base. However, growth has been much slower outside of North America with only 6 million active users – that’s only 4% of their total user base.
Although utilisation outside the U.S. is relatively low compared to within country usage, there are still major countries/regions where Pinterest is expanding rapidly as many people are still placed into it for finding shopping ideas or a fun way to connect and stay creative with others online. Some countries experiencing fast-paced uptake include: Mexico, Germany and Japan.
Mexico’s mobile usage is particularly high compared to other countries – 73% vs a global average of 66% – and this opens up an interesting opportunity for Pinterest to target customers in this region more heavily with ads and promotional content related to products relevant to Mexican lifestyle and culture. Furthermore, with 10 million users logging in from Mexico already, it shows potential upside if they focus on this market more strategically in the coming years (in combination with other locales).
Wherever they expand geographically, though, one lesson that can be taken away from this data is that targeting international markets correctly can have great potential rewards─if done properly!
Pinterest’s Third-Quarter Revenue Beat
In the third quarter of 2020, Pinterest saw a significant improvement in their revenue as they surpassed analysts’ expectations. The upsurge in revenue was mainly driven by increasing international growth of the platform, particularly in Europe and Asia. This unexpected growth saw Pinterest’s stock surge to unprecedented heights.
Let’s take a closer look at how this growth was achieved.
Overview of the company’s financial performance
Pinterest reported third-quarter revenue of $443 million, up 60% year-over-year and better than the average analyst estimate of $430 million. International revenue grew 79% from last year to a record $207 million, representing 47% of total revenue.
The company’s Adjusted EBITDA for the quarter was a negative $3 million, versus analyst forecasts for a loss of $21 million. Pinterest’s adjusted EPS was a loss of 10 cents, beating expectations for a 19-cent loss per share.
Social network monthly active users (MAUs) were 459 million in the third quarter, an increase of 44% over Q3 2019. MAUs on Pinterest have grown an average of 39% per quarter since 2017 and 79 percent since 2016 with strong growth in international markets driving this trend.
Advertising revenue increased 55 percent yearly to $392 million, with 98 percent coming through the self-serve platform. Total cost and expenses increased 68 percent over last year to reach nearly $366 million, largely driven by investments in research and development (R&D). R&D spending reached 32 percent of total operating expenses this quarter.
Impact of the revenue beat on the company
Pinterest’s better-than-expected third-quarter results led to a strong stock price reaction with shares rising as much as 11% in after-hours trading on Tuesday. Though smaller than its peers, the visual search engine reported sales of $443 million in the third quarter, beating analysts estimates of $421 million. The company also reported an 18% yearly gain in its user base with 379 million monthly active department users.
The revenue beat exceeded expectations and the strong user growth signalled further progress on the company’s international expansion efforts that began in 2018. This is notable considering Pinterest faces tougher competition from domestic and global peers like Facebook, which owns Instagram and heavily invests in its product lineup. The upside delivered by Pinterest during the third quarter can be attributed largely to its expanding customer base outside of North America and Europe and a recent stronger presence for product ads on its platform. Furthermore, user engagement also increased across both younger and older demographics leading to increased Advertising revenues for the firm compared to last year’s figures.
The promise of strong growth from international markets was further complemented by Pinterest’s growing monetization capabilities which netted a 97% better year-over-year increase for their ad revenues in Q3. This results also signal a healthy outlook for future quarters. Management expects quarterly revenue growth to accelerate going forward due to higher engagement rates with video content, new features such as augmented reality lens integration and machine learning based product recommendations becoming available across various platforms.
Overall, these factors resulted in a favourable stock market response indicating investors’ confidence in Pinterest’s long term outlook despite competitive pressures they face from other tech companies.
Pinterest shares soar on third-quarter revenue beat as it bucks online ads trend
Pinterest recently reported its third-quarter earnings which showed its online ad revenue had increased significantly. The company’s share price also rose in response to the results. This indicates that Pinterest’s international growth is having a major impact on the online ads landscape.
Let’s look at the implications of this international growth on the industry.
Overview of the online ads market
The online ads market continues to experience rapid growth. According to Zenith research, global spend on online advertising totaled $239 billion in 2019, an annual growth rate of 14.2%. Search ad spend remains the largest portion of online advertising with estimated spending at a whopping $125 billion, followed by social media and other online channels.
Pinterest has significantly contributed to its international growth through targeted digital advertising campaigns within Global markets such as the US, UK, Canada and India.
Pinterest allows digital advertisers to target their audience based on user-generated content across diverse topics and interests. A strong emphasis is placed on creating relevant ad content customised for individual users; operating outside of traditional search engines or generic display ads allows for more interesting engagement as topics are tailored based on user’s interests, resulting in higher click-through rates than search results alone could provide. Furthermore, the platform offers considerable promotional opportunities through its creator marketplace and Stories format. Both allow brands to create content and collaborate with influencers directly, furthering awareness amongst target audiences and significantly impacting how individuals perceive their product.
Online businesses are also provided with valuable insights within the user insights dashboard that give them access to data related to follower count, reach breakdowns by profile category etc., allowing them access to critical analytics that can inform content strategy execution from targeting the right group of people.
Impact of Pinterest’s international growth on online ads
Since its launch in 2010, Pinterest has quickly become one of the most popular social networks. With over 250 million monthly active users, the platform has spread to more than 190 countries worldwide. This international expansion has significantly impacted the online advertising market due to Pinterest’s unique content discovery and discovery experience for users.
With its presence in so many markets worldwide, Pinterest is well positioned to capitalise on a global appetite for content discovery and curation – as evidenced by growth rates of 40% year-over-year in 2016. In addition, by targeting its audience more accurately with effective advertising campaigns tailored to each country, Pinterest can drive more sales for advertisers and increase revenue opportunities for itself on a global scale.
International growth also allows Pinterest to gather more data from users who engage with their platform outside the US. Data gathered from each country helps improve user engagement, enriching marketing experiences by focusing on individual interests, enabling media buying strategies that maximise reach with local search terms, leveraging platform insights such as regional trends and demographics or regional holidays which trigger seasonal campaign opportunities or feedback on which content resonates better with which market.
Another benefit of having an international presence is greater access to new potential partners due to wider reach across different markets and different countries expanding business advantages into other markets that would have not been previously available before international growth took place and introducing better experiences through special localised features providing out of feed advertisement opportunities that use local languages or cultural references. In addition, these new partnerships lead to increased monetization: marketers can target specific design briefs from individual countries and link campaigns originated from one region into tailoring them differently in another region – resulting in increased user engagement.
In conclusion, Pinterest’s international growth has greatly impacted online advertising by allowing for better targeting across various geographic locations, increasing data collection opportunities which can be used to further optimise performance campaigns, building deeper relationships between advertisers globally, creating unique opportunities to leverage localised cultural references improving ROI and gaining access to new potential marketing partners leading towards increased monetization.
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