According to Pinterest, there are now 433 million monthly active users on Pinterest worldwide, down 5% from last year.
It is predicted that Pinterest will slowly shed users over the next five years.
Here’s a brief look at the numbers:
- Pinterest anticipates third-quarter revenues to increase by “mid-single digits” versus last year, falling very short of analysts’ expectations of 12.7% growth.
- Pinterest’s revenues rose 9% year-over-year (YoY), its slowest growth in two years, due to softening advertising demand from CPG companies, big-box retailers, and mid-market advertisers.
- Average revenue per user (ARPU) grew 20% in the US & Canada, going from $4.87 to $5.82. Global ARPU jumped 17% overall.
- CFO Todd Morgenfeld said on the company’s earnings call that shopping revenues are growing twice as fast as overall revenues.
An Increased Investment in Social Commerce
Due to this decrease, Pinterest’s new CEO Bill Ready is hoping social commerce will return the platform to future growth.
However, Pinterest will have to compete with the more prominent social commerce platforms like Facebook, Instagram, and TikTok. If Pinterest can grow its user base and lean into personalization and social commerce, it could potentially outshine the competition since the platform is great at monetizing its current and loyal audiences.
Younger Audiences Aren’t Interested in Pinterest
Although they are making a push towards social commerce and personalization, Pinterest still struggles to reach teen users, which proves to be a blocker for many brands. This could further limit Pinterest’s ability to attract retailer and advertiser spends. Pinterest has loyal consumers; however, it lacks the attraction of new users.
The Platform Still Plays A Role In The Customer Journey
Pinterest has the unique position of being social media, search, and commerce. Since the platform is a tool for inspiration and product discovery, it’s important for brands to capitalize on the consumer shopping journey, which gives it a more valuable insight for consumer purchase intent, making it more attractive to retailers.
With Pinterest’s personalized shopping experience, it is important to cater ads and lean into personalization to ensure the user’s experience is relevant, and that you speak to the user journey with sequential messaging.
If you need assistance leveraging Pinterest or any other media platform for the upcoming holiday season, contact us today; our experts are here to help.