But unlike the growth of earlier social media giants, Pinterest’s future revenue gains may come more from a rise in its average revenue per user (ARPU) than massive user expansion. The platform’s audience is still growing—particularly in markets outside the US—but the days of supercharged user growth may already be in its rearview mirror. Its ad business, however, could be on the brink of achieving escape velocity.
The reason? The platform is tailor-made for retail and brand marketers. Unlike other social media platforms that traffic in passive ad exposure, Pinterest is a more lean-forward environment, where users seek inspiration and actively pursue their interests.
Pinterest CEO Ben Silbermann, who was interviewed on the main stage at ShopTalk on Tuesday, said users will often tell you exactly what they’re after by how they name their Pinterest boards, like, “How I want my dream wedding to look” or “Things I want to buy my wife for her birthday.” Whether these users are following the latest style trends, hunting for a new coffee table or trying to find a creative appetizer to whip together for this weekend’s dinner party, the platform allows them to express their creativity while capturing and curating their specific tastes.
Fortunately for retailers and brands, a direct line can be drawn from many of those tastes to an advertising opportunity. After all, why wouldn’t advertisers want to have their brands and products be part of the conversation when the consumer is likely to be both open to new ideas and primed to buy?
Perhaps it’s not surprising that users clearly rely on Pinterest to assist in their shopping experience. The platform leads its social media counterparts in finding and shopping for products, at 48% of US users, according to research by Cowen and Company. That’s three times more than the next closest competitor—Facebook—at 14% of users.