Pinterest to Focus on Gen-Z for Growth

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What is the relationship in the activity between the shopping and the Gen-z users? Yeah, so, you know, we're finding our best product market fit in years. We've we've hit an all time high with users more than half a billion users. And as you noted, Gen Z is our largest demographic. It's now more than 40% of our platform and it's our fastest growing demographic as well. And at the core of that growth with Gen Z has been the rising actionability in the platform. Pinterest is where Gen Z goes to shop. And as we've made Pinterest more actionable so that people can get to more of the things they're finding on on Pinterest, we're seeing that work really well for users where we've accelerated user growth for seven straight quarters now, but it's also cutting through for advertisers where, as you noted, revenue grew 23% this quarter, nearly doubling our revenue growth rate from last quarter. And so we're really seeing this be quite synergistic between users finding the things they love on Pinterest and then advertisers finding it's a great place for them to meet users that are in-market, looking to shop and buy. And let's just talk about some of the synergies that you've managed to bring to bear with Amazon, with Google, with those ad partnerships. Bill, how much of that advertising uptick is thanks to these third parties? Well, you know, on the shop ability front, you know, historically Pinterest had solid digital window shopping. It was hard to get to the things that you found on Pinterest. We have opened the stores and in doing that, we're seeing that retailers broadly are finding great performance on Pinterest. At the core of our revenue acceleration has been our strength in low funnel actionability. Users that are clicking and buying. We more than doubled the number of clicks we sent to advertisers in Q4 and we did it again in Q1. That is broad based, but we are seeing our best strength with the largest, most sophisticated retailers that provide really great buying experiences. We're quite pleased with that. And we also see that the third party demand that we've brought onto the platform is doing exactly what it was intended to do, which is routing out gaps in our auction and bringing more great shoppable Bible content on to Pinterest so that when users find what they're looking for on Pinterest, they can easily click and buy it. This was a milestone quarter in the sense that Global Monthly users passed half a billion for the first time. You've put a lot of emphasis on gen. So look forward. What is the arc of user growth and what drives it? What brings in new users to your platform? Bill? Yeah, So, you know, as I mentioned, it's our seventh consecutive quarter of accelerating user growth. We've accelerated in every geography and with every generation that we track, Gen-z is our fastest growing and our largest. We have millennials right behind that. So our improvement in the product has been broad based and it is that actionability at the core. But I would say we are just getting going with that. We see much more building momentum in that as we look forward. And it's both the actionability as well as the positivity that we're bringing into it. We, we we've made tremendous strides with AI in AI is bringing more relevant recommendations for users so they can take action on more of what they find. But it's also the case that we're tuning AI for positivity. We're tuning it to help users feel better, not just in finding what they're looking to shop and buy, but in making sure that we're bringing inspirational content to them. So we've done things like inclusive where we have skin tone filters so people can filter for things that you know will reflect them and including diversity. By default. In our feeds, we introduce body type A.I., where people can select body types so that they can find more things that fit well for them. And so we want to make it so that every person on Pinterest can see themself on Pinterest. And so that's really leading to great strides in both the the relevance, the representation, and in just people feeling positive when they spend time on Pinterest. So last night on the Amazon Media Call, Bryan as I was, he was asked about Teemu and Shane in the context of competition with you guys at Pinterest, a little bit different. Would you talk about Teemu and Shane as potential partners? Are you seeing any uplift from Chinese advertisers? So, so API cross-border has been a contributor to our growth, but it's a nice contributor. You know, it's not overwhelming, but it's a nice contributor. But as I mentioned before, our strength in retail has been broad based. Retailers of all sizes are finding strength on Pinterest and it's because they're seeing that doubling of clicks that we sent to advertisers year on year in Q4 and again in Q1. And it's also because they're able to meet hard to find shoppers like Gen-z on Pinterest and they're meeting those shoppers in a really unique moment because users come to Pinterest when they have clear intent. More than half the users on the platform are here to shop, but they haven't yet decided what to buy. So they're not necessarily searching for a specific brand or a specific item. Or maybe the decision's already made. They're coming here with much more general thoughts, like cool outfits for spring. What to wear to Coachella. And those are great moments for advertisers to meet users because the user has clear intent but hasn't decided yet what to buy. And again, we're seeing that broad based across retailers. China Cross Border is a contributor, but it's broad based strength, with retailers focusing a little bit more on China for a moment, Bill. I mean, this is a unique time in social media more broadly, because it looks as though one of the key social media player might be falling away. Do you think more Gen-z will come to you because of TikTok potentially being banned completely, no longer existing in the U.S.? Well, when you look at why we are doing so well with Gen Z, it is because we are we are doing something very different than the rest of social media for Gen Z. Most of social media has the user in a lean back entertainment mode. We have the user in a lean forward mode with intent and purpose. And I mentioned tuning for positivity. You know, Gen Z sees Pinterest as an oasis away from the toxicity they experience. How much of the rest of social media. They know that social media has largely become comparative and performative. And if you go talk to Gen Z about why they spend time on Pinterest, they'll say they go to other places on social media and see what others want them to be, what others expect them to be, and then go to Pinterest to discover what they want to be and invest in themselves with a small circle of friends. So that's already winning with Gen Z, and we're not sitting around hoping for the demise of other platforms. We're just busy building something that makes people feel more positive as they give them a great experience, and that's winning, particularly with Gen Z. Okay, so no clear ambition to capitalize on the uncertainty, but clearly seeing the flow of Gen Z, what really always interests me, Bill, is when you break down your numbers in terms of average users and where they are, you're so dominant in the rest of the world. Do you see us as the area of growth? Do you see internationally more the area of growth? Where do you see the expansion? So it's a great question. As you noted, we have approximately 80% of our 80% or more of our users outside the US, but only possibly 20% of our revenue, not outside the U.S. So the improvements we've made from the user perspective have been broad based. As I mentioned, we've accelerated users across every geography. On the monetization side, we are much further along in the U.S. and we are now starting to deploy those things internationally. And so we see international as a huge growth vector for us both in terms of what we will bring to advertisers directly where we do first party selling as well as where we're bringing in new sources of demand either through third party demand, like what we're doing with our Google partnership in international markets or what we're now doing with resellers in international markets where they can bring more local demand, which is going to be great for those advertisers, but also great for users that will find more shoppable content. As more of those advertisers, those international markets come on to our platform.
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Channel: Bloomberg Technology
Views: 1,800
Rating: undefined out of 5
Keywords: Bill Ready, Caroline Hyde, Consumer Goods; Retail, Ed Ludlow, Gen Z, Pinterest Inc, Retail, online shopping, shopping
Id: kwlwBlzBPFc
Channel Id: undefined
Length: 7min 57sec (477 seconds)
Published: Wed May 01 2024
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