With the rise of online marketing and e-commerce due to COVID-19, Pinterest has added more users and increased revenue which is highlighted in Q3 2020 performance update. Pinterest has added 26 million more users in the Q3 and reached 442 million MAU.
The above graph depicts that the growth momentum is quite slow but the platform’s yearly growth is far better than Facebook, Snapchat, and Twitter.
MAU growth was strong in both the US and international markets, driven primarily by COVID lockdowns in many regions. Particular strength came from users under the age of 25, a trend that we’ve seen for several quarters. People who began using Pinterest during COVID-19 continued to have high levels of engagement in Q3. In fact, users in the COVID-19 cohort had higher retention and higher engagement (defined as impressions, closeups and saves) than a cohort of new users during the same period last year.
We’ve learned more about the users who began using Pinterest during the COVID-19 period. First, their engagement tends to increase when lockdown orders are in effect and wane when the orders are lifted. Second, they typically come to Pinterest for a specific purpose (e.g., building a home office) rather than for general inspiration.
Pinterest will look for a massive number of user growth beyond this pandemic, but it is difficult to predict it at this point of time.
Pinterest said that there is a demand for ads by the big brand advertisers in this pandemic period, however, small advertisers and mid-size advertisers also accelerated the demands of ads on Pinterest.
During Q3, revenue from both conversion optimization (oCPM) and shopping ads continued to grow much faster than our overall revenue. Pinterest also continued to provide a positive platform for businesses to build their brands and drive sales.
Spend from the group of advertisers boycotting social media accelerated in Q3, though it’s not yet clear how sustainable this trend will be, particularly after the U.S. presidential election cycle ends.
Switch From Facebook To Pinterest
Facebook advertisers hold their ad spend due to protest in July, the main reason was the platform’s less action on hate speech, which automatically shifted advertisers to Pinterest to check the results that Pinterest can provide.
Investments to build out our international ads business have also continued to diversify our advertiser base, particularly in Western Europe, where we hired sales teams in the fall of 2019. The diversification of our advertiser base driven by technology and sales investment matters because it improves our ability to serve contextually relevant ads against growing search engagement.