pinterest has announced through a publication on its official blog a advertising deal with e-commerce giant Amazon, through which third-party advertising will be managed on the social network of boards and pins. The agreement, which is the first of these characteristics signed by Pinterest, represents a change of direction in the company’s commercial policy, which aims to strengthen its advertising revenue.
Through the statement, Pinterest notes, “As user engagement with shoppable content on Pinterest grows, we’re pleased to have selected Amazon as our first partner for third-party ads.” In addition, it indicates that the alliance will serve to bring «more platform-relevant brands and products combined with a seamless Amazon shopping experience for consumers and will provide advertisers with strong performance.”
On Pinterest, brands connect with their audience naturally
From Pinterest they affirm that more than 463 million people visit the social network every month and brands and products are essential for users to easily move from inspiration to action, while advertisers have the opportunity to connect with users who have strong commercial intent. In this sense, the alliance with Amazon will make it possible to scale these efforts considerably.
This deal with Amazon will go rolling out gradually at quarterly intervals, something that Pinterest hopes to start rolling out later this year.
paul kotasSenior Vice President of Amazon, says, “Amazon Ads is thrilled to partner with Pinterest and make make it even easier for customers to discover and buy products relevant through shoppable content while providing differentiated value for brands.”
For his part, Bill ReadyCEO of Pinterest, said: “This historic partnership will add to the big brands already on the platform and will deliver greater comprehensiveness, shopability, and a better shopping experience for users, along with greater performance for brands and advertisers. This aligns with our goal of making every Pin shoppableso we can enable as many users as possible to make their dreams come true.”
And it is that the advertising association of several years between both platforms can reach revolutionize the online shopping experience for Pinterest users, by offering an integration between new product discovery and online shopping. Additionally, the partnership can be key to improving the overall user experience within Pinterest.
Users of the social network increase, but it experiences a slowdown in its income
With the growing popularity of video platforms, Pinterest image boards started to feel stale, so the social network has made efforts to adapt to the changing tastes of users by introducing the first ideas of videos and making a greater investment in the creation of content.
While according to Pinterest’s latest performance update, the platform experienced a increase in active users during the first quarter of 2023, achieving 13 million users further That the last yearalso lived a deceleration in the entrance of income when obtaining 603 million dollars (546 million euros) in the first quarter, 5% more than last year globally. And although a percentage increase is shown, this contrasts with the 18% year-on-year increase in revenue that it registered in the first quarter of 2022.
On the other hand, like other technology companies, Pinterest is facing external macroeconomic factors that have affected its digital business and have caused it to have net loss of $208.5 million (188 million euros) in this first quarter, a situation that forced it in February to lay off 150 employees to cut costs. This reality could explain the platform’s interest in strengthening its advertising business.
Stay informed of the most relevant news on our Telegram channel