Pinterest, the social media platform known for its visual discovery and bookmarking features, has announced a multiyear advertising partnership with Amazon. The announcement comes as Pinterest reported a revenue boost for the first quarter of 2023, beating analyst expectations.
Under the partnership, Amazon advertisers will be able to use Pinterest’s ad platform to reach its highly engaged audience of more than 450 million monthly active users. This will allow Amazon to expand its reach beyond its own platform and tap into the vast user base of Pinterest.
He also stated that users come to Pinterest with a high intent to shop and discover new products, making it a valuable platform for advertisers.
The partnership is expected to benefit both companies. For Pinterest, the deal is a significant step in its efforts to monetize its platform and diversify its revenue streams beyond advertising. For Amazon, it is an opportunity to reach new customers and increase its advertising revenue.
Behind the Scene
The announcement came as Pinterest reported its Q1 2023 earnings, which exceeded the analysts’ expectations. The company reported revenue of $1.17 billion, up 78% year-over-year, beating the consensus estimate of $1.13 billion.
Pinterest has experienced noteworthy growth in its user base and engagement in recent years, driven by its focus on visual discovery and inspiration. The platform has become a popular destination for users looking for ideas and inspiration for everything from home decor to fashion and beauty.
The company has also made significant investments in its advertising platform, launching new ad formats and targeting capabilities to help advertisers reach their target audiences more effectively. The partnership with Amazon is the latest example of Pinterest’s efforts to expand its advertising offerings and attract more advertisers to its platform.
What to Expect
The partnership is expected to enable Amazon advertisers to access Pinterest’s audience insights and targeting capabilities. This, in turn, will allow them to reach users who are actively searching for products and inspiration.
This is particularly valuable for advertisers in categories such as home decor, fashion, and beauty, which are popular on both Pinterest and Amazon.
Overall, the partnership between Pinterest and Amazon is expected to be profitable for both companies, enabling Amazon to reach a new audience and allowing Pinterest to expand its advertising offerings.
With strong Q1 earnings and a growing user base, Pinterest is seemingly well-positioned to cherish its growth momentum and capitalize on the opportunities presented by this partnership.
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Krishi Chowdhary
Journalist
