Pinterest, Inc. (Pinterest) operates as a visual search and discovery platform, positioned at the intersection of search, social, and commerce.
The company offers a unique and differentiated experience that enables people to go from inspiration to action all on one consumer internet property. Pinterest can be accessed through its mobile application or the web. The company generates revenue by delivering ads on its website and mobile application.
People use Pinterest to find useful, relevant id...
Pinterest, Inc. (Pinterest) operates as a visual search and discovery platform, positioned at the intersection of search, social, and commerce.
The company offers a unique and differentiated experience that enables people to go from inspiration to action all on one consumer internet property. Pinterest can be accessed through its mobile application or the web. The company generates revenue by delivering ads on its website and mobile application.
People use Pinterest to find useful, relevant ideas—and then bring them to life. People don’t always have the words to describe what they’re looking for, but often know it when they see it. As they browse Pinterest content (called ‘Pins’), they fine-tune their tastes and find the perfect idea. Users interact with the platform in dynamic multi-session journeys to find inspiration, curate their latest look, plan their next project and shop from great brands. This happens at a massive scale, with billions of searches and saves per month.
The unique, first party, intent-based signal the company receives from user actions on Pinterest helps power the AI based recommendation systems that it uses to surface relevant and engaging content to its users. AI also plays a central role in how it drives value for its advertisers, who come to Pinterest to reach its users with high commercial intent. The inspiration-to-action journey on Pinterest aligns with the advertiser marketing funnel, allowing the company to help brands reach customers at every stage, from discovery to purchase, through digital ads.
Users and Platform
553 million monthly active users from around the world come to Pinterest to find new ideas, curate and refine their tastes, and turn those ideas into reality. The company’s platform particularly resonates with women, who comprise roughly two-thirds of its total user base. In addition, its platform also resonates with the younger generation, as Gen Z users represent over 40% of its user base. Geographically, the company has a diverse user set, representing over 100 countries globally.
Content on Pinterest comes from a variety of sources, including retailers, brands, creators, publishers and users. The company acquires that content via a wide range of methods, including product catalog uploads, direct publishing, and user curation. Content formats include images that allows to click into an idea to learn more, videos that provide the steps of an idea, collages that allow users to piece together different images into one, and products that brands and merchants upload from catalogs.
On Pinterest, users interact with several surfaces, each of which offers distinct functionalities and experiences. Users often move between these surfaces various times in a single session and across multiple sessions. Saving content and creating boards and collages are highly unique and beneficial to its ecosystem, as it utilizes the signals from the curation to help serve users even more relevant content recommendations.
Home Feed: When users open the Pinterest mobile application or navigate to www.pinterest.com, they are by default in their Home Feed, where they can discover Pins relevant to their tastes and interests in a scrolling format. As users interact with more content - through searching, saving and curating - their Home Feed is designed to become even more representative of their interests.
Search Page: On the Search surface, users find Pins they are looking for by typing a query in the search bar. The search functionality allows users to see many relevant possibilities that are personalized for their individual taste and interests. Users often come to Pinterest with a vague idea of what they’re looking for and use its visual search functionality to narrow their focus. As such, over 90% of the company’s searches are unbranded.
Related Pins: Visual discovery on Pinterest also happens when a user taps on a Pin to learn more about an idea or image, and a feed of visually similar Pins is served beneath the tapped image. These related Pins help user’s springboard off a point of inspiration to explore deeper into an interest or narrow in on the perfect product. Its related pins surface is powered by its recommendation models that use computer vision designed to identify products in the Pin and show other relevant organic or ads content that the user might find valuable to their inspiration to action journey.
Boards: Users save and organize Pins onto virtual boards. Boards often are labeled with topical categories like ‘Hawaiian vacation’, ‘spring outfits’ or ‘living room furniture’ and are a collection of Pins that help users organize the vast amount of visual content that they interact with on the platform.
Flywheel
The company’s users often come to the platform to get inspiration for many of life’s moments, which can lead to discovering new products and brands. As a result, commercial content from brands, retailers and advertisers is central to Pinterest. In-market consumers on Pinterest tend to be early in their journey toward a purchase decision and do not yet know exactly what they want to purchase. Accordingly, they are open to discovering new products and brands on Pinterest rather than merely navigating to brands they already know, as is common on traditional search engines and e-commerce platforms. This creates a unique flywheel where relevant ads can enhance the user experience and drive more value for advertisers in the form of increased views, clicks, and conversions.
Advertising System
Ad Formats
The company has a number of advertising products to help advertisers meet users across the full funnel, from upper funnel brand advertising to lower funnel performance advertising. Many of its ad formats can be leveraged by advertisers across upper and lower funnel objectives. Additionally, many of these formats are enabled with mobile deep links and/or direct link capabilities for a seamless, one-click handoff from an ad to the advertiser’s mobile app or webpage.
Standard ad: A static image used to showcase content in a simple vertical image format.
Video ad: Used by advertisers to capture attention and tell a story with a visually engaging format.
Shopping ad: Used by advertisers who wish to promote specific products in their catalogs to reach users who are deciding what to buy.
Carousel ad: Multiple static images or videos in one carousel, used by advertisers to showcase more than one image or video at a time.
Collection ad: Used by advertisers to display products in action with a hybrid format that mixes lifestyle imagery and video with featured products.
Interactive ad: Used by advertisers to engage with their users through interactive formats.
Premier Spotlight ad: Used by advertisers to showcase their latest product launch or seasonal moments with exclusive placements on the Pinterest Home Feed and search page.
Ad Auction
The vast majority of the company’s advertisers buy ads through an auction-based system. Its ad auction allows it to serve ads to users at relevant moments while optimizing business outcomes for advertisers.
The company offers ads across both the upper and lower funnel. Upper funnel ‘brand’ revenue is billed when an advertiser optimizes an ad campaign around ‘brand’ objectives like impressions (‘CPM’) or video views (‘CPV’). Lower funnel revenue is billed when an advertiser optimizes an ad campaign around ‘performance’ objectives like clicks (‘CPC’), actions (‘CPA’) or conversion events (‘oCPM’), such as a checkout or add-to-cart.
The company’s auction system selects the best ad for each available ad impression, based on the likelihood of a desired action occurring and how much that action is worth to advertisers. The likelihood of the action occurring depends on a variety of factors, such as ad relevance and creative quality.
Campaign Management
For most campaigns, advertisers can manage set up, track results and improve performance over time through its Ads Manager or the Pinterest API. To help maximize performance, advertisers can target specific groups of users based on interests, demographics and search keywords. The company continues to invest in AI to automate campaign set up and performance optimization for its advertisers.
Measurement
Measuring the effectiveness of digital ad spend is a high priority for its advertisers. The company’s first-party measurement solutions, including its Conversions API and clean rooms, are designed to help advertisers recognize the value of an investment on its platform across a variety of objectives. It also has tools to help advertisers understand its contribution and drivers to conversion, and incremental impact. Advertisers can leverage its leading third-party measurement partners to validate Pinterest’s performance individually and across channels. Additionally, the company’s Conversions API is integrated with other third-party partners to help increase adoption of its measurement tools.
Sales and Marketing
Go-to-market approach
The company has advertisers across multiple verticals, including retail, consumer packaged goods, travel, financial services, and auto. It serves these advertisers in customized ways depending on their size, sophistication and objectives across the full funnel. The majority of its advertisers utilize its Ads Manager platform to initiate and manage their campaigns. The company also has a global sales force presence who work directly with advertisers and ad agencies to provide additional support through the campaign management cycle. In some geographies, it works with other third parties to support its sales efforts.
Marketing
The company grows its global user base organically through the strength of its global brand, the utility of its service and unpaid traffic from search engines. In addition, the company uses paid marketing to grow and retain its user base, build brand awareness and attract advertisers through business marketing and scaled education tools for optimizing campaigns on its platform.
Competition
The company primarily competes with consumer internet companies that are either tools (search, ecommerce) or media (newsfeeds, video, social networks), particularly ones focused on advertising. Competitors, such as Amazon, Meta (including Facebook and Instagram), Google (including YouTube), Snap, Reddit, TikTok, and X, many of which are larger and have significantly greater financial and human resources, offer users engaging content and commerce opportunities through similar technology or products to the company.
Intellectual Property
As of December 31, 2024, the company had approximately 400 issued patents and pending patent applications in the United States and foreign countries relating to aspects of its actual or contemplated operations and technologies. It also had over 660 registered trademarks and trademark applications in the United States and foreign countries, including its ‘Pinterest’ name and related logos.
Government Regulation
The company relies on a variety of statutory and common-law frameworks and defenses relevant to the content available on its service, including the Digital Millennium Copyright Act (DMCA), the Communications Decency Act (CDA) and the fair-use doctrine in the United States, and the Digital Services Act (DSA) and EU Directive on Copyright in the Digital Single Market (EU Copyright Directive) in the European Union.
The company is therefore subject to U.S. federal, state, local and foreign laws and regulations regarding data privacy and the collection, storage, sharing, use, processing, disclosure and protection of personal information and other data from users, employees or business partners, including the General Data Protection Regulation (GDPR), the California Consumer Privacy Act, as amended by the California Privacy Rights Act (CPA), the Florida Digital Bill of Rights, and other state laws that may take effect in 2025.
Seasonality
The company has historically experienced seasonality in monthly active user growth, monetization on its platform and free cash flow. Historically, it had lower sequential user growth in the second calendar quarter (year ended December 2024). Industry advertising spend tends to be strongest in the fourth quarter resulting in higher revenue, and free cash flow is historically higher in the first quarter as it collects on the fourth quarter's higher revenue.
History
The company was founded in 2008. The company was incorporated in Delaware in 2008. It was formerly known as Cold Brew Labs Inc. and changed its name to Pinterest, Inc. in 2012.