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Pinterest Idea Proposal (PINS)

Pinterest Idea Proposal (PINS)
 

Does Pinterest have the engagement levels and targeting expertise to thrive in a digital ad market dominated by Facebook, Google and Twitter?

Report Available: May 9, 2019

 

Blueshift’s initial research found Pinterest’s revenue growing and losses narrowing as it prepares to go public. The online bulletin board has a sizeable and growing user base, though it lags the social media behemoths. There are questions about how engaged its users are and whether it has the targeting capabilities of its rivals for ad dollars, but Pinterest has some unique attributes that could help it stand out.

 

Observations

  1. Pinterest’s upcoming IPO values the digital pin board company at about $11 billion with its proposed share price of $15 to $17. Pinterest is going public after a strong 2018 in which its revenue grew 60% to $756 million. The company is not yet profitable, but its loss narrowed from $130 million in 2017 to $63 million last year, and it managed an operating profit in Q4. Analysts are expecting revenue to top $1 billion in this year.
  2. Pinterest boasts 265 million monthly active users, a figure that rose almost 23% last year but is far less than FB’s 2.3 billion and trails TWTR’s 321 million. The demographics of Pinterest’s user base is significantly different than its competitors for ad dollars. Women make up two-thirds of Pinterest’s user base and the company claims that 80% of U.S. mothers between the ages of 18 and 64 use the site. Half of U.S. millennials – those born between 1981 and 1996 – are Pinterest users, according to the company.
  3. Pinterest, however, does not report how many of its users visit the site daily, a key metric for advertisers, which has led to some concerns about how engaged its users are. It is also not clear whether Pinterest has the same level of personal information on its users that allows platforms like FB and Instagram to provide the precise targeting that ad buyers crave. On the other hand, Pinterest users may have higher purchasing intent than those visiting other social media sites, as images pinned to the digital bulletin board are usually about recipes, crafts and home projects for which people need supplies.
  4. Another way that Pinterest has tried to set itself apart from rivals in recent years is by downplaying interaction between users. That has allowed it to avoid some of the harassment, political feuds and toxic cultures that have engulfed FB, TWTR and GOOG/GOOGL’s YouTube.

 

Can Pinterest maintain its revenue growth rate in 2019? How do advertisers view the site compared to its rivals? What types of engagement levels are advertisers seeing? How are Pinterest’s CPMs and other key metrics compared to FB, GOOG/GOOGL, TWTR and SNAP? What are the headwinds and roadblocks Pinterest faces that could slow its growth? To answer these and other questions, Blueshift will gather data and issue a market research report from independent sources in the following areas: Advertisers, Advertising agencies, and Industry Specialists.

 

Companies: Pinterest Inc. (PINS), Alphabet Inc. (GOOG/GOOGL), Facebook Inc. (FB), Snap Inc. (SNAP), Twitter Inc. (TWTR)

 

Research Begins: April 22, 2019

 

Blueshift Research’s sister company, Intro-act, is launching its Intro-act Scorecard, the C-suite’s standard, ongoing measure of corporate investor engagement.

 

The Scorecard optimizes the ROI on corporate access by measuring: Concentration, Directionality, Breadth, Impact, Depth, and Duration