Pinterest Eliminates TikTok Threat in First Quarter Revenue

- Advertisement -


Pinterest may have hit on income and income in the first quarter, but the company is not yet out of the woods when it comes to finding a place for its services in today’s competitive environment. In particular, Pinterest is facing a real threat with the rise of TikTok when it comes to social commerce. The idea that you can be inspired to buy by looking at media shared by others is an experience that Pinterest helped pioneer in some way with its chalkboard-style website, where users often saved ideas about things they were considering for purchase or try.

- Advertisement -

But these days, the more common refrain among inspired and inspired shoppers is “TikTok made me buy this” rather than “I found this on Pinterest.”

- Advertisement -

The company understands that this is a challenge it must face to make its website the destination for the next generation of online shoppers.

Company on Wednesday informed pretty decent income pulling of $575 million in revenue versus an expected $573 million and an EPS of 10 cents instead of an expected 4 cents. But one worrying area has been the decline in user numbers. The company said monthly active users worldwide fell 9% year-over-year to 433 million for the quarter, lower than expected 437.9 million.

- Advertisement -

Investors delved into the decline in users in the subsequent earnings a call with a focus on better understanding how Pinterest counters the TikTok threat.

Pinterest explained that it has been investing in its new video-based features over the past year and a half, such as Idea icons — a kind of video mashup of TikTok style short video content and listenable stories.

These Pins are designed to bring creators to Pinterest by allowing them to record and edit creative videos using common tools such as voice recording, background music, transitions, and other interactive elements. But Pins can also include content pages where creators can add instructions, such as steps to complete a DIY project or ingredient lists for a recipe. This makes Pins more targeted and actionable than some of the content on predominantly entertainment sites like TikTok or Instagram Reels.

Pinterest has acknowledged that it had to put in a significant amount of work to catch up with the video market, but believes it is now starting to gain momentum.

The company said its shift to video has come at the expense of some monthly active users in the short term, but it is taking risks to launch a new video-centric ecosystem. As a result, the number of video idea pinners increased by 15 times compared to last year, and the feature was noted to attract a more engaged audience. Pinterest also reported that idea pin saves were up more than 25% compared to the previous quarter. And Pinterest users who follow multiple video creators on the site tend to visit Pinterest more often than those who don’t, the company said.

“This is also strategically important because we believe the video format is essential for people to be inspired and act in the future,” said Pinterest CEO Ben Silbermann.

Pinterest also plans to further develop new video publishing features, including through the use of its latest acquisition of Vochi, that will help creators create better videos that are more likely to inspire action. He is said to be planning to expand his creator rewards. launched Pinterest shopping API and started beta testing new feature called “Your store”which offers users a personalized experience by connecting them to products they may like.

But Pinterest also said it felt the impact of lower search traffic and “time people spent on competitive platforms.” While the former was due to Google’s search algorithm adjustments in the quarter, the latter was more of a veiled reference to TikTok, in addition to other social apps.

The company noted that the US is its most mature market, with a range of social networking, entertainment and news applications competing for the time users spend on mobile devices.

“We called [the] competition just because consumers have a huge number of options on their phone at any given time,” Silbermann said, without specifically mentioning the word “TikTok.”

“However… what we’ve heard from Pinners and what we’re seeing is that we have a pretty differentiated use case… it’s a use case of actually using Pinterest to plan, prepare for big events, and then, in the end, to consider the purchase. And this is very different from the entertainment and news use case,” he added.

But investors were clearly keen to understand how TikTok, in particular, was affecting Pinterest’s business, prompting direct questions about the growing threat of the short-form video giant, whose mobile the app just saw the most downloads worldwide in the quarter.

“We don’t have accurate information about where people spend their time,” Silbermann replied. “Obviously the story of the last two years in terms of time shift has been the rise of TikTok as the main place people spend their time,” he acknowledged, before reiterating that Pinterest’s focus is on content that inspires action, and not just entertainment.

“This needs to be reflected in how we provide incentives for creators, as well as how we rate content on Pinterest,” he said, before laying out a vision for how Pinterest would compete with TikTok.

“The reason the Pinterest feed is different from the social or pure entertainment feed is because the content is ranked based on how useful the idea will be for doing something in the future. the CEO continued. “When we think about things like rewarding creators and rolling out new ad formats like sponsored idea pins, that’s sort of the central thesis behind it all. And it fits in with Pinterest’s overall thesis that it’s not a platform to connect with friends. This is not a platform to keep up with the news. This is a platform for you to articulate what you want to do with your life. [and] for us to help you visualize what that end state looks like,” he said.

Pinterest also said it will work to improve home board recommendations and the quality of search results, while making Pinterest easier to access and use, even for visitors who are not logged out.

But the company did not allow a monthly active user. [MAU] the losses were caused by TikTok or other competitive threats.

Instead, he largely blamed the Russian-Ukrainian war and lower activity from other regions across Europe for the global decline in users, with an impact of about 5 million MAUs. Barring this situation, Pinterest thought its MAU would be slightly higher than previous estimates.


Credit: techcrunch.com /

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox