Pinterest’s Exciting Partnership With Amazon: Game-Changer for Investors!

Published on: 05 October 2023 Last Updated on: 30 October 2024
Pinterest's Exciting Partnership With Amazon

April 27 marked a significant day in the world of e-commerce and social media as Pinterest (PINS 1.70%) unveiled a groundbreaking partnership with Amazon (AMZN 1.83%). While initial reactions saw Pinterest’s shares dip by 3%, it’s time to delve deeper into this collaboration, revealing why it’s a game-changer for Pinterest’s shareholders.

Pinterest’s platform is a treasure trove of “pins” – images that users upload or save for inspiration. Amidst these pins, users encounter image-based advertisements, the lifeblood of Pinterest’s revenue stream.

What’s truly fascinating is Pinterest’s ambition to make these ads “shoppable.” Businesses can utilize Pinterest’s tools to seamlessly convert ad views into sales, seamlessly blending with the browsing experience.

Previously, Pinterest worked directly with businesses for ad creation. However, in April, a turning point arrived as Pinterest partnered with Amazon to introduce third-party ads for the first time. This means that the advertisers on Pinterest are Amazon’s clients, not Pinterest’s directly.

Amazon’s advertising segment is soaring, generating nearly $10.7 billion in Q2 2023, up 22% year over year, and boasting a staggering $41.3 billion in trailing-12-month advertising revenue. In comparison, Pinterest’s trailing-12-month revenue stands at $2.9 billion.

With businesses having their product listings promoted on either Amazon or Pinterest without extra effort, this partnership can yield substantial benefits.

While the effects of this partnership won’t be instantaneous, it’s poised to boost Pinterest’s revenues significantly for two compelling reasons:

1. Ample Ad Inventory: Amazon’s ad business is already 14 times larger than Pinterest’s, and it’s growing faster. The influx of Amazon ads on Pinterest’s platform can potentially increase ad rates, benefiting Pinterest’s bottom line.

2. Enhanced Relevance: A broader ad inventory enhances Pinterest’s ability to deliver more relevant ads to users, driving their effectiveness. Successful ads generate higher demand from advertisers.

Moreover, the partnership reduces Pinterest’s expenses, as it no longer needs to convince Amazon merchants to advertise on its platform. This streamlined process can lead to improved profit margins. In the words of The Motley Fool, “Since these ads are from Amazon’s customers, Pinterest’s profit margins can go up because it’s spending less on sales and marketing.”

Beyond the financial aspects, the partnership’s strategic significance cannot be underestimated. As the first third-party ad partner, Amazon may pave the way for more such collaborations, further fueling Pinterest’s growth and profitability.

Pinterest’s partnership with Amazon is more than a business deal; it’s a catalyst for future success. Investors should take note of the transformative potential this collaboration holds for Pinterest’s stock. While Amazon is the first major partner, there’s potential for more to come, making Pinterest’s future even more promising.

Keep Learning:

Ankita Tripathy loves to write about food and the Hallyu Wave in particular. During her free time, she enjoys looking at the sky or reading books while sipping a cup of hot coffee. Her favourite niches are food, music, lifestyle, travel, and Korean Pop music and drama.

View all posts

Leave a Reply

Your email address will not be published. Required fields are marked *

Related

_Black Friday Deals 2023 On HBO Max_ Upto 70% Discount 

Black Friday Deals 2023 On HBO Max: Upto 70% Discount 

Black Friday is here and one of the most popular streaming services HBO Max is rolling out its Black Friday deals. HBO Max has surprised everyone with the aggressive pricing of their streaming services. Discover all the essential information you need to know about the HBO Max Black Friday Deal 2023 before making your payment! Recently, HBO Max rolled out its sale, where they provided a significant discount on subscription fees. As per the HBO Max Black Friday deal, new and returning users can purchase a subscription (With Ads) for only $2.99 per month for six months. However, this discount is not available for current HBO Max subscribers. Additionally, there are no concessions available for their Premium subscription, which will still cost $15.99 per month (without ads). If you are a fan of DC Universe, then HBO Max should be your go-to streaming service. It offers a vast collection of DC content, including the latest Blue Beetle Movie, along with a range of superhero shows and movies. Additionally, you can enjoy popular HBO original shows like The Last of Us, Rick and Morty, True Detective, Teen Titans, and many more. Therefore, if your interests match, I suggest you take advantage of the HBO Max Black Friday deal without any delay. HBO Max provides an extensive range of programming that is hard to find elsewhere. The combination of Warner Bros. and Discovery TV shows and movies funneling into Max ensures that you can find all your favorite DC superhero films and shows alongside other popular shows like "House of the Dragon," "Game of Thrones," or reality shows like "Wipeout," and many more.HBO Max has a vast selection of TV shows and movies, ranging from classic series like "Friends" and "The Big Bang Theory" to new releases like "Doctor Who," which is currently celebrating its 60th anniversary. As a long-time subscriber to HBO Max, I can attest that the platform offers plenty of options for sci-fi enthusiasts. For instance, "Scavengers Reign" is a highly recommended show that you can find on HBO Max. Additionally, if you're interested in documentaries, I'd suggest checking out "From Earth To The Moon," a ten-part series produced by Tom Hanks that chronicles NASA's journey to the Apollo 11 moon landing based on Andrew Chaikin's book. Read Also: How To Cancel Walmart Plus? – Step By Step Guide Walmart Deals On Black Friday: Apple Watch, PS5, And More

READ MOREDetails
NBCUniversal BMW Canada, Pinterest And Soylent Are 2023 Finalists For Greater Good Awards

NBCUniversal BMW Canada, Pinterest & Soylent Finalists 2023

One of the top things that ruled this year’s Greater Good Nominations is sustainability. Companies have been shortlisted based on their efforts to create a better future. Corporations around the world are investing in areas that need awareness and development. Centralizing the causes they stand for, companies are making it their mission to stand by them through their line of business. Automaking giant BMW Canada has earned a nomination in the Sustainability category for their campaign supporting their new line of electric vehicles. BMW’s latest EV iX xDrive50 drove a campaign to raise awareness about the company’s strong commitment to environmental conservation. Being a leading electric vehicle maker BMW Canada joined hands with Media Experts and CBC to come up with a branded series of content highlighting the people behind green technology. They also managed to subtly integrate the iX xDrive50 into the campaign. The carmaker and media houses also worked with Sharethrough to fund carbon-offsetting ventures. https://twitter.com/GoodwillFinds_/status/1711829931972325780?s=20 Soylent has been nominated in the World Hunger category for their brand donations that are worth $2.4 million USD of their products in the fiscal year of 2022. They have donated to shelters, food banks, and other communities facing food shortages. Pinterest has been named in the Better Future category, which aims to recognize campaigns and initiatives supporting the long-term future by sponsoring areas of science, technology, environment, and security. As part of their support for environmental causes, they provided advertising credits to increase the traffic on climate change content on the platform. In the Social Justice category, NBCUniversal is one of the nominees for the Plan Your Vote campaign that they carried out during the 2020 pandemic. It returned again in 2022 to help Americans move through the changes in voting rules. Microsoft Teams used the entire Comcast NBCUniversal ecosystem, adding a bilingual marketing campaign to reach a larger audience.  This marketing campaign brought in 764 million impressions on all the platforms of Comcast NBCUniversal in 2022. It also earned an estimated media value of above $3 million USD. Learn More About: YouTube Ends Premium Lite Plans After 2 Year Trial Period! Get Your Deets Yellow Metal Is Expected To Be At A Range-Bound With A Minimal Bearish Bias

READ MOREDetails
Elon Musk To Introduce New Products That Will Challenge YouTube And LinkedIn

Elon Musk To Introduce New Products That Will Challenge YouTube And LinkedIn

The social media site X formerly known as Twitter, has said that YouTube and LinkedIn are future competitors while they pursue new business lines in video and hiring. Elon Musk, owner, and Chief Executive Officer Linda Yaccarino have called out the social media sites during an all-company meeting on Thursday. The company commemorated Musk’s one-year anniversary of his takeover on Twitter Inc. The duo has also revealed plans to create a news wire service called Xwire, which will be going up against Cision’s PR Newswire. The meeting was a first of its kind as they addressed the company together. The latter was hired as the company CEO in May and crossed over from NBCUniversal. She was in charge of the partnerships and advertising. Yaccarino has been focused on rebuilding relationships with advertisers, while Musk has been revamping the product itself, according to the report. He introduced premium subscriptions, redefined account verification, and implemented a community-driven fact-checking system called Community Notes. Musk being the world’s richest man, has closed a $44 billion deal to buy Twitter on October 27 last year. He fired most of the executives and cut or sparked resignations from most of the employees. Advertisers have fled the platform and are not showing signs of wanting to come back. Both the executives have touted record amounts of time spent on the platform, counting 500 million users. However, some third-party estimates have revealed the numbers have gone down since last year. In a Thursday post on the social media platform, the X account said the platform has added more than 100 features over the last 12 months while giving users a chance to weigh in and suggest ideas. The post on X read, “Our goal is simple: to make X the coolest and most enjoyable place on the internet. This includes maximizing prosperity for content creators, enabling better/more authentic conversations, and giving you more tools to express yourself.” Read Also: How To Keep Up On The Latest News? Facebook Blueprint: Building A Strong Foundation For Social Media Advertising

READ MOREDetails