Image sharing and social media service platform, Pinterest has announced a 4 percent jump year-on-year in its latest earnings even as the company announced it now has 450 million monthly active users globally. In the new announcement, the American company said while its user bases in the United States and Canada stayed at 95 million, growth in other regions contributed to this milestone.
The company also announced its readiness to continue to grow its footprints over the format, while at the same time monetize it.
Pinterest CEO, Bill Ready during the earnings call said:
“Over the long term, we also want to make every pin shoppable. To that end, we’re making video content on Pinterest more actionable using the same playbook we applied to static images. Over the course of this year, we’ll be deploying our computer vision technology across our video corpus to find products and videos and make them shoppable”.
The CEO mentioned that Video supply on Pinterest had a 30 percent growth quarter-over-quarter due to the large influx of Gen Z users, who he said contributed to about 50 percent of the video pins in the 4th quarter. The company will be glad about the realization that videos are contributing to a good chunk of its revenue.
“Importantly, while we’re seeing more than 10% of our engagement is on video, it’s more than 30% of our revenue is on short-form video,” Ready said.
Pinterest had in June 2022 introduces a short video advertising under4 the purview of the “Idea Ads” project, with the company at the time noting that aside generating clicks, companies could also use the format to generate brand awareness.
In July 2022, the company brought support for video assets in product catalogs, while in October same year, partnered with major labels like Warner Music Group, Warner Chappell Music, Merlin, and BMG to let users add licensed music to their clips and to also make short videos more engaging.
This idea trajectory may have attracted the young generation and contributed to the rise in Pinterest active users.
With other big names in the short video world working against time to look at different ways of monetization in competition with Pinterest, the company doesn’t seem to be fazed as it believes it makes use of images in a unique way, as it stands out with being able to do something remarkable with video. The company also says its approach is different from other short video apps that want users to sit back and get entertained while scrolling through clips.
“We have the user in a lean-forward and tent mode, you know, where we think shoppable content, these kinds of things, would be much more well received by our users. And so, that’s, you know, a big part of, you know, what comes next for us, you know, is that we’re looking at how we make video shuffle,” Ready said.