Pinterest announced a multiyear strategic marketing collaboration with Amazon to offer its platform more brands and relevant items. In addition, in a blog post accompanying its first-quarter earnings beat, Pinterest announced its first third-party ad partner.
The picture sharing and social networking site has been adapting to users’ evolving product discovery interests, and the cooperation represents a new path. Pinterest launched its video-first Idea Pins and invested more in creator content as TikTok and Reels gained popularity.
Pinterest’s shares fell after its last-quarter revenue failure and warning of poor first-quarter sales.
Amazon’s digital advertisements segment rose 19% to $11.6 billion in the same period.
Like other digital businesses, Pinterest is battling macroeconomic constraints but pledged to adapt. February saw 150 layoffs as the corporation cut costs.
Pinterest has always linked product inspiration to purchases, but the Amazon marketing relationship may streamline the process. In addition, most Amazon consumers have their payment information on file, making checkout speedier. Pinterest alleges Amazon ads send visitors to Amazon to buy.
“Over 463 million people visit Pinterest monthly to create a life they love. “Brands and products are a critical part of this journey, enabling Pinners to move easily from inspiration to action and advertisers to realize the value in connecting with users with high commercial intent,” Pinterest wrote in its blog post. It stated Amazon would help grow these initiatives.
The firm said that Amazon advertisements integrations would be implemented over many quarters later this year. However, Pinterest isn’t predicting revenue consequences or where advertising will display to end users until next year.
“Amazon Ads is delighted to partner with Pinterest and make it even easier for customers to discover and buy relevant products through shoppable content, while also providing differentiated value for brands,” said Amazon SVP Paul Kotas.
Pinterest surpassed Q1 sales and earnings, with revenue rising 5% year over year to $603 million, ahead of the $598 million predicted, and adjusted EPS of $0.08 vs $0.02. In addition, $463 million global monthly active users increased by 7% year over year. As a result, GAAP net loss rose to $209 million, or 31 cents per share, from 1 cent per share in the prior year.
Pinterest shares fell 6% on increased Q2 costs despite beating earnings.
