To increase its ad revenue, Pinterest just announced a new partnership with Google. Having last year inked a multiyear agreement with Pinterest, Google is the social network’s second third-party ad partner.
While reporting Q4 2023 earnings that fell short of analyst estimates, the company discussed the Google partnership. Pinterest’s monthly active users increased to 498 million over the period, representing an 11% year-over-year growth in revenue of $981 million.
When CEO Bill Ready revealed the Google deal, Pinterest’s shares rose after falling almost 28% due to lower-than-expected revenue. Positive outcomes have already been observed by the company, he stated, since it started using the new ad integration a few weeks ago.
“This partnership will focus on monetizing several of our currently unmonetized 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 global 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.
Growing audiences
Additionally, the business introduced an auto-organizing function for customers last year that encourages them to build boards by identifying comparable pins. The social network saw a 30% rise in the number of boards made as a result of the function.
Ready added that customers may refine their search queries and go closer to “the point of action or purchase” with the aid of the company’s generative AI-based search recommendations.
In an effort to provide more inclusive search results, Pinterest began testing a new tool in November of last year that allows users to specify body type ranges.