The Underestimated Potential of Pinterest Business Model

Summary

This video explores Pinterest's unique business model and its potential as a powerful visual discovery engine. Founded in 2008, Pinterest enables users to save and organize images, and it excels in areas where even Google competes. Unlike other social media, Pinterest is used with specific goals, making it valuable for targeted advertising. With a strong user base, particularly among women and mothers, Pinterest drives significant purchasing decisions. Despite its slow internal decision-making process, Pinterest is poised for growth, especially in international markets, and offers a positive alternative to traditional social media platforms.

Takeaways

• 🔹 Pinterest is often underestimated but has a solid foundation and a promising business model.
• 🔹 It competes with Google in certain areas, particularly in image search.
• 🔹 Pinterest is misunderstood by many as either a social network, a collaboration tool, or just an image-saving app.
• 🔹 Founded in 2008 by Ben Silverman and Evan Sharp, Pinterest officially launched in 2010.
• 🔹 Users can save images on boards that can be categorized and organized, similar to collecting items in real life.
• 🔹 Pinterest is described as a visual discovery engine, providing more relevant image search results than Google Images.
• 🔹 It is popular among creative people and professionals for finding ideas and organizing inspiration, particularly in home decoration, recipes, travel, and fashion.
• 🔹 Pinterest users typically use the platform for specific goals and occasions, making it different from other social media used daily.
• 🔹 The platform's revenue model is based on businesses buying ads with promoted pins, targeting a highly qualified audience.
• 🔹 Pinterest is particularly popular among women, who are major decision-makers in household purchases, with 85% of users having bought something based on pins they see.
• 🔹 Pinterest has 404 million users worldwide, with significant room for international expansion.
• 🔹 The company has a slow decision-making process, focusing on a positive user experience and avoiding the negative impacts often associated with social media.
• 🔹 Despite a decline in U.S. active users post-pandemic, Pinterest's overall user base and international growth remain promising.
• 🔹 Even competitors like Google and Amazon have tried to copy Pinterest's features, underscoring the platform's value and loyal user base.

Q & A

What is Pinterest often underestimated for?

Pinterest is often underestimated for its solid foundation and promising business model.

How does Pinterest compete with Google?

Pinterest competes with Google in certain areas, particularly in image search and discovery.

What confusion do people often have about Pinterest?

People often don't understand if Pinterest is a social network, a collaboration tool, or just an image-saving app.

When was Pinterest officially launched?

Pinterest was officially launched in 2010.

What was the origin of the idea for Pinterest?

The idea for Pinterest originated from Ben Silverman's love of collecting things as a kid and his desire for a proper tool for the collection experience on the internet.

How can Pinterest be described today?

Pinterest can be described as a visual discovery engine, allowing users to search for and collect images of interest.

What makes Pinterest's image search different from Google Images?

Pinterest's image search is better because the results are more relevant, and users can organize images into various boards.

Who were among the original drivers of growth on Pinterest?

Interior designers were among the original drivers of growth on Pinterest.

What are some popular categories on Pinterest?

Popular categories on Pinterest include home decoration, recipes, travel, fashion, and more.

What is Pinterest's revenue model?

Pinterest's revenue model involves businesses buying ads, particularly promoted pins, to reach a targeted audience.

How does Pinterest's AI enhance the shopping experience?

Pinterest's AI allows users to click on various items in an image and find similar products, enhancing the shopping experience.

Who are the main decision-makers among Pinterest users?

Most Pinterest users are women, who are often the main decision-makers in household purchases.

What is the average percentage of Pinterest users who have bought something based on pins?

85% of Pinterest users have bought something based on the pins they see from brands.

What was the total number of Pinterest users worldwide as mentioned in the script?

Pinterest has an overall 404 million users worldwide.

What is unique about Pinterest's corporate culture?

Pinterest's corporate culture is slower in decision-making, requiring most of the workforce to be on board with new ideas, unlike the 'grow fast and break things' model.

How does Pinterest aim to be different from other social media platforms?

Pinterest aims to drive inspiration and action, motivating users to deliver on their projects in real life, without the social pressure for likes and constant content creation.

What challenge did Pinterest face in the third quarter of 2021?

Pinterest faced a decline in U.S. active users by almost 10 million from a year ago in the third quarter of 2021.

What new tool did Google launch to compete with Pinterest?

Google launched a new tool called Keen, which is a copy of Pinterest but based on Google's search engine.

How do Pinterest users' behaviors differ from those on Instagram or TikTok?

Pinterest users browse with a clear goal in mind, such as planning a renovation or a trip, while Instagram or TikTok users browse mostly for entertainment.

Why is Pinterest considered to have a lot of room for international expansion?

Pinterest is considered to have a lot of room for international expansion because its user base is primarily American, and the platform has not yet reached its full potential in other countries.