Pinterest announces a new advertising deal with Google as it approaches 500M MAU

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Pinterest announced a new advertising deal with Google as the company aims to grow its ad revenue. Google is the social platform's second third-party advertising partner after Amazon signed a multiyear deal with Pinterest last year.

The company talked about the Google partnership during an earnings call for the fourth quarter of 2023, where it posted lower results than analysts expected. Pinterest's revenue in the period was $981 million, a 12% year-over-year increase. While monthly active users grew by 11% year-on-year to 498 million.

Pinterest's stock fell nearly 28% due to lower-than-expected revenue, but recovered after CEO Bill Reedy announced the Google deal. He said the company rolled out the new ad integration a few weeks ago and is already seeing positive results.

“This partnership will focus on monetizing many of our currently non-monetized international markets by enabling ads on Pinterest through Google's Ads Manager. We went live a few weeks ago, and it's starting to grow rapidly. “As we anticipated, demand for third-party advertising is growing,” he said.

Ready noted that 80% of Pinterest's users are outside the US but they only represent 20% of revenue. He said the Google partnership will help increase average revenue per user in international markets.

growing audience

Pinterest CEO talks about leveraging AI and new formats to grow userbase and engagement. He said the company has rolled out the Collage feature to all iOS users globally, which allows users to use stickers and objects to create a new image. The company said 75% of colleges have shoppable product pins, but it didn't say anything about conversion statistics.

Last year, the company also launched an auto-organizing feature for users, which recognizes similar Pins and prompts users to create a board. This feature led to a 30% increase in boards created on the social platform.

Ready also said the company's generic AI-based search guides help users solve their queries and get them closer to the “point of action or purchase.”

Last November, Pinterest began experimenting with a new tool to include body type categories in search to make results more inclusive.