Home / Business and Economy / Pinterest Faces Ad Competition Heat
Pinterest Faces Ad Competition Heat
5 Aug
Summary
- Pinterest forecasts slower revenue growth due to ad competition.
- AI is central to Pinterest's business momentum and growth.
- Monthly active users grew 11% to 640 million in Q2.
Pinterest anticipates a deceleration in revenue growth for the third quarter, projecting a 13% to 15% increase. This forecast emerges amidst heightened competition for digital advertising dollars, particularly from Meta's Instagram and Google's revamped AI-driven visual search features.
The image-sharing platform has been actively developing its AI-powered Performance+ suite to attract and assist advertisers. This strategic focus on AI is deemed a significant accelerant for its business, as stated by CEO Bill Ready.
In the second quarter, Pinterest experienced an 11% year-over-year rise in global monthly active users, reaching 640 million. Concurrently, average revenue per user saw a 7% increase, amounting to $1.86. The company also recently acquired tvScientific to broaden its advertising reach into connected TV.
