How do Pinterest make money?

Answered by Phillip Nicastro

Pinterest generates its revenue primarily through advertising, specifically through promoted pins. These promoted pins are advertisements that blend in with user-generated pins, creating a seamless integration within the Pinterest platform.

One of the key features that sets Pinterest apart from other social media platforms is its focus on visual discovery and inspiration. Users can browse through a vast array of pins, which are essentially images or videos that users save to their boards. These pins cover a wide range of topics, including fashion, home decor, recipes, travel, and more.

To monetize its platform, Pinterest introduced promoted pins. These are pins that appear in users’ feeds and search results, just like regular pins, but they are paid advertisements. By blending in with the organic content, promoted pins can grab users’ attention without being overly intrusive or disrupting the user experience.

Advertisers can create and manage their promoted pins through Pinterest’s self-serve ad platform. They have the flexibility to target specific demographics, interests, and keywords to reach their desired audience. This targeted approach allows advertisers to connect with users who are most likely to be interested in their products or services.

In addition to promoting pins, Pinterest has also introduced the “buy it” button. This feature allows users to purchase products directly from Pinterest, without the need to visit a separate merchant website. When users come across a pinned product they’re interested in, they can simply click the buy it button and complete their purchase within Pinterest’s platform. This provides a convenient and seamless shopping experience for users, while also driving revenue for Pinterest.

By combining promoted pins with the buy it button, Pinterest has created a monetization strategy that capitalizes on its visual discovery platform. Advertisers can reach their target audience effectively, while users can discover and purchase products they find inspiring or interesting.

In terms of revenue breakdown, Pinterest does not publicly disclose specific figures. However, it is estimated that advertising accounts for the majority of the company’s revenue. As of 2021, Pinterest has been steadily increasing its advertising offerings and expanding its reach to further monetize its platform.

Pinterest’s revenue model revolves around advertising, specifically through promoted pins, and the integration of a buy it button to facilitate direct purchases. This combination allows Pinterest to generate revenue while providing users with a visually engaging and seamless experience.