Pinterest is a beacon of opportunity for businesses seeking to expand their horizons this year. In Q4 2023 the Platform saw a “12% surge in revenue to $981 million and an 11% year-on-year increase in global monthly active users reaching an all-time high of 498 million” (Pinterest, Fourth Quarter and Full Year 2023 Results), which positions Pinterest as a compelling investment option for media diversification in 2024.
Why Pinterest Matters:
Pinterest's success can be attributed to its strategic initiatives, notably the “launch of a record number of ad solutions.” This approach has empowered brands to “enhance their campaign performance, making Pinterest an attractive avenue for advertisers looking to diversify their ad spend.”(SELand.com, Nicola Agius)
Extended Reach Potential:
The noteworthy “surge in global monthly active users” not only reflects Pinterest's current success but also hints at “the platform's substantial potential for extended reach.” (SELand.com, Nicola Agius) For businesses, this presents a unique opportunity to tap into a growing audience and maximize brand exposure.
Anticipated Growth in 2024:
Pinterest is projecting a “growth of 15-17% year-on-year for the first quarter of 2024. Revenue forecasts for this period are estimated to be in the range of $690 million to $705 million. Additionally, the company anticipates non-GAAP operating expenses to grow between 9-13% year over year” (Pinterest, Fourth Quarter and Full Year 2023 Results), reflecting its commitment to sustained development.
Aligning User and Advertiser Interests:
Pinterest boasts a unique alignment of user and advertiser interests, which is a rarity. According to Pinterest’s CEO Bill Ready, users are engaging deeply with the platform, and “brands are responding favorably by leveraging the full suite of Pinterest's products to drive superior campaign performance. This harmony has translated into sustained double-digit revenue growth for Pinterest.”
Setting Your Business Up for Success on Pinterest:
Given Pinterest's trajectory, brands can position themselves for success by:
Embracing Ad Solutions: Leveraging Pinterest's innovative ad solutions can enhance campaign performance. The record number of ad solutions reflects Pinterest's commitment to staying at the forefront of advertising innovation.
Optimizing for Engagement: Create engaging content that resonates with Pinterest's visually-driven audience. Utilize the platform's features, such as Pins, Boards, and Carousels, to tell a compelling brand story.
Building Organic Presence: It’s imperative to develop a robust organic presence by creating captivating content. Engage with the community, respond to comments, and build a foundation of authenticity before incorporating paid promotions.
Stay Informed: Keep abreast of Pinterest's evolving features and updates. The platform's commitment to innovation means that staying informed is key to maximizing the opportunities it offers.
Diversifying Ad Spend: Pinterest's better-than-expected performance makes it an enticing option for diversifying your advertising efforts. Consider allocating a portion of your ad budget to capitalize on the platform's extended reach alongside your other investments.
Pinterest's performance in Q4 2023 set the stage for a promising 2024. For businesses and brands, this is an opportune moment to diversify your media mix by leveraging its innovative ad solutions. Get in touch with Revel Interactive to learn more about our paid social advertising capabilities!