Pinterest teams up with Google to boost ad revenue: Report

According to a report by TechCrunch, Pinterest announced a partnership with Google for advertising In an effort to increase ad revenue. Google is the second third-party advertising partner on the social network, following Amazon, which last year inked a multiyear agreement with Pinterest.

During the Q4 2023 earnings call, the firm emphasised the Google partnership, even though its performance fell short of analyst forecasts. With a 12% yearly growth, Pinterest's revenue for the period was USD 981 million. However, the number of monthly active users increased by 11% annually to USD 498 million.

Due to revenue that fell short of expectations, Pinterest's stock dropped by over 28%. However, it rose after CEO Bill Ready revealed the Google acquisition. Positive outcomes have been observed by the company since it began implementing the new ad integration a few weeks ago.

“This partnership will focus on monetising several of our currently unmonetised international markets by enabling ads to be served on Pinterest via Google’s Ad Manager. We went live a couple of weeks ago, and this is starting to ramp up. Third-party ad demand is scaling as we anticipated,” he said.

According to Ready, Pinterest's non-US user base comprises 80% of its total users, while their share of revenue is only 20%. He said that in international areas, the Google relationship will contribute to an increase in the average revenue per user.

CEO Ready has highlighted the company's efforts to increase user engagement and user base through AI and new formats. According to the report, the company introduced a collage feature for iOS users, which has been embraced by 75% of colleges.

Additionally, the auto-organising feature boosted boards by 30%. The company also uses generative AI-based search guides to help users refine their queries and incorporate body type ranges in search results for more inclusivity.