![]() The second problem for Pinterest is user growth. Many of these clones focus on specific interests, which could lure away Pinterest users with their familiar design mechanics. Other sites like Trippy, Wanderfly, Gtrot, Manterstring, and Gentlemint also followed suit with Pinterest clones. eBay ( EBAY 0.17%), for example, replaced its main page with a clone of a Pinterest pinboard last October. Pinterest has certainly proven its appeal as an advertising platform, but it needs to prove that it has staying power to keep up with Twitter and Facebook before it can go public.įirst and foremost, Pinterest is highly vulnerable to copycats. The study also states that users referred from Pinterest are 10% more likely to purchase a product than from other social networks. In Pinterest, it feels natural to repin it to your own board.Ī study compiled by Quick Sprout in January claimed that clicks on Pinterest generate four times as much revenue as Twitter and 27% more than Facebook clicks - a calculation based on sales reported from Pinterest's 500,000 business accounts. When a Twitter or Facebook user comes across an ad in their Timelines and News Feeds for new shoes, it sticks out like a sore thumb. When users see products they like, they repin it again to their followers. Pinterest's key difference is that it encourages people to pin products they like, want, or have onto pinboards to share with others. The problem, however, is that most people aren't browsing Twitter or Facebook to shop. Twitter and Facebook got the ball rolling first by promoting the idea of "companies as friends." That was the first big step - following and "liking" business pages felt like a more natural way of interacting with a company than clicking on banner ads. Pinterest is a more natural way to introduce ads to the user than its peers. Although it's unclear how much revenue Pinterest can generate from these ads, the company has kept the promise it made in January to generate revenue this year. Major companies in retail ( Gap, Lululemon Athletica), food ( Kraft, General Mills), and travel ( Expedia, Disney resorts) immediately lined up to participate. That's why it followed Twitter's lead and launched Promoted Pins earlier this month. Three words (well, two and a phrase) clearly illustrate Pinterest's allure as an investment: women, iPads, and sponsored ads. $5 billion seems tiny compared to Facebook and Twitter's respective market caps of $149 billion and $19 billion, but that's exactly what makes Pinterest such an attractive IPO candidate - it could go public much earlier in its growth cycle than either company. The company has raised $764 million in venture capital to date. Pinterest recently raised another $200 million in funding, giving it a market value of $5 billion. At the end of 2013, Pinterest had 35 million monthly active users (MAUs), compared to Twitter's 57 million monthly MAUs in North America. Launched in March 2010, Pinterest has 70 million registered users - a sharp increase from 10 million users in early 2012. after Facebook ( META 0.03%) and Twitter ( TWTR), file for an IPO soon? Recent growth numbers, funding, and monetization strategies certainly suggest that it could be the logical next step for the scrapbook-like site. Could Pinterest, the third most popular social network in the U.S.
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