Pinterest is the best place to get motivation and ideas to change your look and the surroundings around you through all the aesthetic ideas and DIY crafts it holds.
The platform has been doing pretty well and since the last 12 quarters showed exceptional user growth and revenue results, however looks like the Q2 of 2021 did not turn out to be in favor for Pinterest.
The revenue presentation for this quarter showed that Pinterest lost about 24 million users drastically from the time frame of 2021 Q1 to Q2, but what was the reason for such huge changes in number?
Well, the company believes that as the lockdown eased around the globe, with the vaccine rolling out and a lot of countries becoming mask free, users around the world are now spending more time outdoors compared to indoors and hence are spending less time on the social network looking for ideas. Apart from this the reopening of physical stores, have decreased the percentage of people who shop through online stores and hence users are shopping through the application less than they used to.
The quarterly report also showed that users who logged in through desktop computers had decreased this past quarter and hence if any retailers had their directed audience at desktop users, they were expected to see a decrease in their reach.
However, from our point of view this was expected because when the pandemic started and people had a lot of free time on their hands, they felt creative and hence the number of users on Pinterest increased drastically and its user count went from 67 million in Q1 20 to 416 million Q2 20 which was the most user’s growth in the history of Pinterest while a normal growth for Pinterest every quarter was 17 million.
So when a large user growth was seen at the start of a pandemic, a decrease was expected when things started going back to normal.
However, while the user growth had seen a downfall, despite this the revenue remained pretty stable.
This is because that though the platform has lost a few users, the remaining present users spend enough time shopping and searching on the platform to discover products due to which the catalog uploads went up to 50% quarter over quarter which gives brands more opportunities to get their products on the first row and more in the eyes of the active consumers.
This means that though a few users left, the active ones are still showing proper engagement because of which brands on the platform are also benefitting and the revenue is also stable which is still a positive sign.
The results also showed that Gen Z were the most active on Pinterest.
However, while the revenue seems fine and the brands and pinners are happy, the platform still needs to re work on its user’s growth and we sincerely hope the next quarter is a better one for Pinterest in terms of user’s growth.
Read next: Pinterest introduces shoppable pins thus introducing a new way for its creators to make money
The platform has been doing pretty well and since the last 12 quarters showed exceptional user growth and revenue results, however looks like the Q2 of 2021 did not turn out to be in favor for Pinterest.
The revenue presentation for this quarter showed that Pinterest lost about 24 million users drastically from the time frame of 2021 Q1 to Q2, but what was the reason for such huge changes in number?
Well, the company believes that as the lockdown eased around the globe, with the vaccine rolling out and a lot of countries becoming mask free, users around the world are now spending more time outdoors compared to indoors and hence are spending less time on the social network looking for ideas. Apart from this the reopening of physical stores, have decreased the percentage of people who shop through online stores and hence users are shopping through the application less than they used to.
The quarterly report also showed that users who logged in through desktop computers had decreased this past quarter and hence if any retailers had their directed audience at desktop users, they were expected to see a decrease in their reach.
However, from our point of view this was expected because when the pandemic started and people had a lot of free time on their hands, they felt creative and hence the number of users on Pinterest increased drastically and its user count went from 67 million in Q1 20 to 416 million Q2 20 which was the most user’s growth in the history of Pinterest while a normal growth for Pinterest every quarter was 17 million.
So when a large user growth was seen at the start of a pandemic, a decrease was expected when things started going back to normal.
However, while the user growth had seen a downfall, despite this the revenue remained pretty stable.
This is because that though the platform has lost a few users, the remaining present users spend enough time shopping and searching on the platform to discover products due to which the catalog uploads went up to 50% quarter over quarter which gives brands more opportunities to get their products on the first row and more in the eyes of the active consumers.
This means that though a few users left, the active ones are still showing proper engagement because of which brands on the platform are also benefitting and the revenue is also stable which is still a positive sign.
The results also showed that Gen Z were the most active on Pinterest.
However, while the revenue seems fine and the brands and pinners are happy, the platform still needs to re work on its user’s growth and we sincerely hope the next quarter is a better one for Pinterest in terms of user’s growth.
Read next: Pinterest introduces shoppable pins thus introducing a new way for its creators to make money
