Pinterest announced a new ad partnership with Google designed to boost its ad revenue.
This marks Google as the second third-party ad partner for Pinterest, following its multi-year collaboration with Amazon that was unveiled last year.
Why we care. This collaboration provides an opportunity for brands running campaigns with Google Ads to not only broaden their reach but also engage with an active, high-value consumer base. This engagement has the potential to lead to stronger return on investment (ROI) and increased conversions.
How it works. The integration will enable ads to be served on Pinterest via Google’s Ad Manager. When Pinterest users encounter a Google Ad they will be directed to the advertiser’s website to complete their purchase.
Timeline. Pinterest initiated the rollout of the new ad integration a few weeks ago and is reportedly experiencing positive results. Following a similar pattern to the Amazon integration, the Google integration is expected to be phased in over several quarters.
International goals. While Pinterest has 80% of its user base outside the U.S., only 20% of its revenue comes from these international users. Executives are optimistic that the Google partnership will play a crucial role in boosting the average revenue per user in international markets.
What Google is saying. Pinterest CEO Bill Ready said:
“This partnership will focus on monetizing several of our currently unmonetized international markets by enabling ads to be served on Pinterest via Google’s Ad Manager.”
“We went live a couple of weeks ago, and this is starting to ramp up. Third-party ad demand is scaling as we anticipated.”
Deep dive. Read Pinterest’s Q4 2023 earnings report for more information.
