Improvements For Advertisers
Pinterest revenues reached $400 million for the fourth quarter of 2019, growing 46% year over year. It even exceeded analysts’ forecast of $371.2 million. Annual revenue surpassed $1 billion to reach $1.14 billion.
Audience growth grew 26% year-over-year reaching 335 million compared to 332 million in 2018. When it came to international growth, the fourth quarter closed an impressive year expanding into 21 new international advertising markets. From those markets, revenue grew from 6% to 13% of total revenue for the fourth quarter.
Pinterest CEO Ben Silbermann indicated that the platform’s 2019 investment in “properly implemented measurement” tools has been a major driver of the revenue from the fourth quarter. According to MarketingLand, conversion campaigns grew 150% last quarter with a 2.5 times improvement in attributable conversions. Feed based shopping ads, more than doubled compared to the first half of 2019 and the number of monthly advertisers buying those ads grew by 125%.
Why It’s Important
Due to the company’s focus on creating more scalable ad products for advertisers, Pinterest saw a better than expected growth in Q4. “The company saw 3x increase in the percentage of people saving their ads this season. The key here is making sure ads are relevant to our pinners’ interests, projects, and plans,” Silbermann explained. Silbermann believes scaling Pinterest’s ads will continue to be a priority with a focus on capturing more mid-size international advertisers.