Pinterest monthly active users have been growing by more than 7% for every quarter in 2023, and just on Tuesday, the stock surged 17% for the image-sharing platform, according to Reuters. The numbers of their monthly active users have seen a significant increase after the pandemic, and they have also surged during that time.
During Pinterest’s September investor day, the company disclosed that 42% of its users were Gen Z, referring to the group as an “emerging powerhouse” since they are the most engaged users on that platform. Hence, it is said to have hit the highest record of 482 million on Monday and was driven by the young generation, Gen Z, seen as a top target for mobile advertisers.
As a result, Pinterest has announced that it will be releasing additional tools for advertisers in 2024, along with the possibility of seeing more ads on its platform, according to Gizmodo.
“Take the strong engagement trends as a sign that Pinterest may have found a product-market fit with younger users, which keeps the flywheel going,” Bernstein analyst Mark Shmulik said.
According to U.S.News, Pinterest’s area of strength was retail, the same as its larger peers, which are Meta, Google and Snap. Pinterest also commented on improving its advertising market for a recovery following the pandemic-induced slowdown and recession warning.
The platform was originally an image-sharing platform that allowed users to save posts or “pins,” or upload their own content. While it helps create online pinboards, it also serves as a place to shop. Hence, what makes Pinterest stand apart from other social media platforms is that the majority of its users utilize it for the express purpose of conducting business, Ready states.
However, Read stated that even though the users are there to shop, their willingness to take action on Pinterest is low. With this, Pinterest has focused on making it more “shoppable”. The increasing amount of “shoppable content” on Pinterest has increased user engagement, according to Ready.
