The nature of the app makes it appealing to the advertisers wherein the app users pin the things they like into a list that their friends can look at
Pinterest is allegedly planning to go public in the next one year.
So far, Pinterest has managed to accumulate almost $1 billion in its ad revenue campaign, a major milestone for the popular photo sharing platform.
Launched in March 2010, Pinterest can apparently double its $500-million-sales figure from 2017 by the end of 2018, as per a report in CNBC. The nature of the app makes it appealing to the advertisers wherein the app users pin the things they like into a list that their friends can look at. Themes ranging from clothing brands to travel destinations, Pinterest makes sure that everyone gets something of their liking in the app.
Compared to a Facebook or Twitter “like”, a pin on Pinterest is a more accurate endorsement of a product. Pinterest can also remove the commission of middle agents between the user and the manufacturers as the merchants can directly post “buyable pins” on the site. Reportedly, more than 200 million users use the site to purchase various products which are way more than on Twitter or Facebook.
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While Pinterest clearly has a wide user base which would prefer its products over any similar sites, many experts have named various problems in the company’s upcoming IPO. Leaked financial documents in 2015 said that Pinterest’s goal was $2.8 billion in annual revenue by 2018 instead of the currently acquired $1 billion ad revenue figure.
Pinterest’s current valuation is in between $13-15 billion. With Uber and Airbnb planning to go public in 2019, the year would be a crowded one for technology startups. As of September 2017, 70 percent of Pinterest’s monthly user base was of women.