Visual bookmarking site Pinterest continues to generate value for advertisers by introducing new tools and features. The company is expanding its self-serve advertising feature to allow advertisers to place ads without any help from advertising sales representatives.
The company is also increasing the number of available keywords and specific interests, which advertisers can leverage to target more than 100 million users.
Receive e-mail alerts for new research on FB:
Interested in FB?
Don’t miss the next report.
Pinterest says that its ads are more effective compared to those of other social media sites such as Twitter (TWTR), Yahoo!’s (YHOO) Tumbler, Facebook (FB), and Google+ (GOOG). This is because Pinterest catches users’ intentions to buy in the future by placing ads that are similar to what they have recently pinned, or liked, such as dinner recipes or coffee tables.
Advertisers are expected to see more conversions this year as the number of available interests on the site rises to 420 from 30. According to the company, “Advertisers can now reach those who have been perusing images of men’s shoes or men’s jackets, rather than simply finding users interested in men’s fashion.”
Pinterest’s ad revenue grew eightfold in 2015 to $169 million, and it’s expected to reach $2.8 billion by 2018, according to Adweek. The graph above represents the site’s total rise in advertisers over the period. These advertisers continue to increase their spending on advertisements in 2015.
Pinterest has more than 100 million active users, of which 80% are female, according to Retail Dive. The company is engaging more users by allowing them to browse vacation destinations, style tips and tricks, and other topics. Users can also pin and organize these topics on Pinterest boards and share the boards across individuals and groups.
Facebook constitutes 4.0% of the Vanguard Information Technology ETF (VGT).