{"id":77379,"date":"2023-08-30T17:57:00","date_gmt":"2023-08-30T17:57:00","guid":{"rendered":"https:\/\/businessyield.com\/?p=77379"},"modified":"2023-11-11T10:11:52","modified_gmt":"2023-11-11T10:11:52","slug":"how-does-pinterest-make-money","status":"publish","type":"post","link":"https:\/\/businessyield.com\/business-strategies\/how-does-pinterest-make-money\/","title":{"rendered":"HOW DOES PINTEREST MAKE MONEY? The Business Model","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"

Pinterest is a unique visual-oriented social media website with 454 million active members globally. It is a leading internet platform and one of the fastest-growing social networks, with a net worth of $28.13 billion. Pinterest, founded in 2010, has grown tremendously and has become a social media sensation by targeting various groups with different attention-grabbing material.
It’s also worth noting that Pinterest is a visual search engine and discovery platform with no direct competitors. Google, the closest competition, has an entirely distinct set of functions.
So, can you explain how Pinterest works? What kind of value does it provide to its customers? Why has no one ever come close to this colossus? And how does Pinterest generate money?<\/p>

What Is the Business Model of Pinterest?<\/h2>

Pinterest considers itself to be both a photo-sharing software and a search engine. The company makes money by offering tailored digital advertisements.<\/p>

While there are other photo-sharing social media sites, including well-known apps such as Instagram and Snapchat, Pinterest’s business model does not revolve around sharing photographs or videos with friends and followers. <\/p>

On the other hand, Pinterest sees itself as a “discovery service” that assists users in creating a virtual vision board. They have a variety of pins to choose from, including regular image pins, product pins, collections, and video pins. Pinterest is commonly used for weddings, house remodeling, and weekly meal planning.<\/p>

Advertising<\/h3>

Pinterest makes the majority of its money through selling adverts. It sells adverts using a cost-per-click and cost-per-thousand impressions approach. Still, it determines price according to engagement, which means that advertisers are only charged when a user interacts with a sponsored pin. Advertisers can also target adverts to users depending on their interests. A bridal gown company, for example, can target ads to people who are actively planning weddings, whereas a paint company can target users who are planning a refurbishment. This advertising appeals to businesses seeking a higher return on their advertising spending.<\/p>

Who are Pinterests’ Competitors?<\/h2>

No companies with the same business model as Pinterest, while photo-sharing social media sites such as Instagram and Snapchat exist. Its main competitors are Houzz (HOUZ), a home remodeling platform, and Tastemade, an online food, and recipe portal.
Takeaway: Pinterest is used by over 335 million individuals each month, with women accounting for two-thirds of all users.<\/p>

How Pinterest Makes Money<\/h2>

Advertising is the primary way Pinterest makes money. On their platform, they distinguish between two types of advertising: brand advertising and performance advertising.<\/p>

#1. Brand Promotion<\/h3>

When an advertiser optimizes their campaign for things like impressions or views, they are using brand ads. These advertisements are ideal for businesses that want to raise brand awareness. They display in a pinner’s home feed and on search results sites, resemble organic pins, and can be saved to pinboards.<\/p>

#2. Performance Marketing<\/h3>

The other way Pinterest makes money is through performance advertising. These are advertisements in which an advertiser optimizes a campaign based on engagement-focused objectives such as clicks or conversion events. These pins, like organic pins, appear in feeds and search results pages. They can be saved to a pinboard as well.<\/p>

#3. Collaborations with Partners<\/h3>

Pinterest offers a carefully curated list of partners who can assist businesses with their advertising strategy, audience targeting, content, creative, performance measurement, and purchasing experience. The companies include;<\/p>