Pinterest is growing rapidly and is expected to match other social media giants in online advertising:
Emarketer just released their first ad revenue forecast for the social media platform Pinterest. Their forecast predicts that the social network will generate more than $500 million in US online ad revenue, which is a 43.8% change from the previous year.
Their ad revenues are estimated to cross the $1 billion mark by the end of the forecasting period in 2020.
Pinterest is growing in rank among other major video ad publishers. Roku one of the largest video ad publishers has introduced a new video ad product for 2018, Emarketer forecast that Roku will generate $7.15 in ad revenue per user(AARPU). This is a 34.4 increase from last year. Currently, Pinterest’s AARPU mirrors Snapchat which currently sits around $7.81 per user for 2018.
The AARPU for Pinterest has been increasing every year and will continue to do so, however, it’s still much lower than the other social media giants. Facebook generates $134.89 per user and Instagram generates $58.45 per user. Pinterest has a lot of catching up to do, but it is rising in popularity and is monetizing its users more frequently.
“Marketers are seeing Pinterest’s potential for reaching consumers as they’re considering products. Placing ads is one way they’re inserting their brands into that interaction,” said Monica Peart, senior forecasting director at eMarketer.
“Pinterest has a significant and engaged user base that it is starting to monetize,” Peart said. “As it leverages its rich user data and develops its ad offerings and measurements, it has the potential to increase monetization levels to the likes of Instagram or Snapchat.”
The user base for Pinterest is mostly female, but the platform is working on diversifying its demographic as its content continues to evolve, eventually gaining more appeal from millennial men. Emarket predicts that there will be 77.4 million users on Pinterest this year, eventually growing close to 90 million by 2020.