Connect with us

SOCIAL

Pinterest Active Users Continue to Slide as it Loses Growth Momentum Sparked by Lockdowns

Published

on

Pinterest Active Users Continue to Slide as it Loses Growth Momentum Sparked by Lockdowns

While eCommerce has seen a big rise in activity as a result of the pandemic, it seems that at least some aspects of online shopping are now returning to the mean, with Pinterest’s active user count dropping once again in Q4 2021, the app’s third consecutive quarter of declining user growth.

As you can see in this chart, Pinterest’s monthly active user count has fallen from 478 million at the start of 2021, to 431 million now, a decline of 47 million active users throughout the year.

That’s a significant drop, and while 431 million actives is still a lot, the fact that Pinterest has lost almost all of the growth momentum that it gained over the past two years (Pinterest hit 416m MAU in Q2 2020) is not a good reflection of any utility and/or value that users are seeing in the app, as it hasn’t been able to keep these people on as regular users, even as it continues to branch out into new regions.

Indeed, that’s been one of Pinterest’s key value propositions, that while it may not have as many users as other social apps, those that are regular Pinners find big value in the platform, with 90% of weekly active Pinners using the app to inform their purchase decisions. That still could be true for its most dedicated users, but if Pinterest isn’t carrying that value over to new audiences, as reflected in its retention and growth stats, that could suggest that it’s failing to capitalize on that potential, and win over a bigger market share for the many brands that are trying to reach their target buyers in the app.

And Pinterest has made a more concerted effort to win over more users, and capitalize on its growth momentum, as reflected in its ‘Sales and Marketing’ spend.

Pinterest Q4 2021

Pinterest knew that it would lose momentum as a result of physical stores re-opening, and COVID restrictions easing around the world, so it made a bigger push to maximize its opportunities through a new branding campaign, in the hopes of stimulating more interest.

Based on the user counts, that hasn’t been overly effective, which is a concerning sign for the app’s growth potential moving forward.

But then again, its revenue figures did improve on the back of increased interest from retail advertisers leading into the holiday period.

Pinterest Q4 2021

As you can see here, the platform brought in $847 million in total revenue for the quarter, with the majority coming from the US. Pinterest is, however, seeing more significant revenue growth momentum in international markets, another potentially good sign.

It’s also posted some solid revenue per user stats, which reflects rising advertiser interest in the app’s audience.

Pinterest Q4 2021

Generating more money per user, however, does essentially come down advertiser interest, and if Pinterest continues to lose growth momentum, it will struggle to maintain these gains over the coming year.

In terms of functional additions, Pinterest expanded its in-app shopping tools to 13 international markets in 2021 (Pinterest says user engagement with shopping surfaces in the app grew 20% YoY), while it also put a big focus on making it easier for merchants to upload their product catalogs, in order to list their products as shoppable Pins.

Streamlined onboarding is key to getting more products into its ecosystem, and with Pinterest also working to improve its search and discovery tools, this is a big element in building out its platform as a central eCommerce destination. Better matches and more options is what, ideally, will keep Pinners coming back, and if Pinterest can generate more sales results for the brands that are using its listings, that will keep things moving in the right direction, at least on this front.

Pinterest also notes that it’s seen significant user interest in its new Idea Pins – its take on Stories – and its Watch tab, which puts more emphasis on video content.

Pinterest Watch tab

Pinterest is also trying to build more incentive for Pin creators, with its own creator funding program, which will help to get more practical, valuable content into its ecosystem, and keep Pinners coming back. That seems like a harder road for Pinterest, given that it’s not focused on entertainment, as such. But it does also need its most popular creators to remain active, in order to give its users more Idea Pin and Watch tab content to check in on.

But there are some clear challenges ahead in building on its opportunities, and stemming the flow of users away from the app.

In some ways, the fluctuations of the past two years have been entirely unpredictable, so who can say for sure what impact each consumer shift and lockdown has had on overall behavior? But if Pinterest loses all of the growth that it gained, that’s a significant impact, especially given other social apps have continued to grow throughout the period.

Does that mean that Pinterest is losing attention, and user interest? Again, 430 million users is still a lot, but if Pinterest drops below 400m, a retraction on its pre-COVID levels, that would be a disastrous result.

Though Pinterest does also make this note, which is interesting:

“In addition, lower search traffic (driven by Google’s algorithm change in November) negatively impacted our MAUs on a year-over-year basis. In fact, we believe lower search traffic was the primary reason for the sequential decline in MAUs from Q3 to Q4 in both the US and international markets.”

That’s seemingly in reference to Google’s Core Update, launched in November, and could reflect concerns from some search marketers that Google now seems to be crawling less content, meaning that websites with a lot of updates lost some of their SEO advantage. It’s hard to say, however, what the full impacts on Pinterest have been – but it clearly believes that the update has negatively impacted Pin performance.

Which is also interesting when you consider that Pinterest and Google are both looking to capitalize on shopping searches, with Google regularly updating Google Images and its visual search tools along similar lines to Pinterest’s advances.

Could it be that Google’s punishing a potential competitor, or using its update as a reminder for Pinterest to stay in its lane and not push too hard on siphoning off search traffic?

It’s an interesting consideration either way, and it’ll also be interesting to note whether Pinterest gets less referral traffic from Google moving forward – and how that impacts its overall performance.


Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address

SOCIAL

TikTok spends $1.5B on Tokopedia JV to get around Jakarta social e-commerce ban

Published

on

TikTok spends $1.5B on Tokopedia JV to get around Jakarta social e-commerce ban

Just two months ago, ByteDance-owned TikTok abruptly closed its shopping platform in Indonesia to comply with surprise regulations from the Southeast Asian country’s government. Jakarta ordered social media companies like TikTok and Facebook to stop selling goods on their platforms, demanding a separation of social media and e-commerce services.

TikTok now seems to have found a way to revive its e-commerce dreams in Indonesia by spending billions to start a joint venture with Indonesian tech giant GoTo. On Monday, the two companies announced that TikTok Shop will now be available on GoTo’s Tokopedia platform.

“Tokopedia and TikTok Shop Indonesia’s businesses will be combined under the existing PT Tokopedia entity in which TikTok will take a controlling stake. The shopping features within the TikTok app in Indonesia will be operated and maintained by the enlarged entity,” TikTok said in a statement Monday.

TikTok will invest over $1.5 billion into Tokopedia, taking a 75% stake in the platform. GoTo will remain an ecosystem partner to Tokopedia and receive an “ongoing revenue stream from Tokopedia commensurate with its scale and growth,” but will not be required to continue funding the platform. Further funding from TikTok also won’t reduce GoTo’s remaining 25% stake.

Getting back into the Indonesian ecommerce market will be a win for TikTok. Indonesia, which is the platform’s largest market outside of the U.S., is key to Tiktok’s online shopping aspirations. In June, CEO Shou Zi Chew pledged to “invest billions in Indonesia and Southeast Asia over the next few years.”

ByteDance wants to replicate its Chinese e-commerce successaround the globe. Last year, consumers spent in China 1.41 trillion yuan ($196 billion) on products sold on Douyin, the version of TikTok for the Chinese market, The Information reported in January. ByteDance, through TikTok, is expanding its online shopping services in both Southeast Asia and the U.S. Yet the company is struggling to win over American consumers: The Information reported in August that U.S. shoppers are spending just $4 million a day, equivalent to $1.4 billion over a whole year, on goods sold on the social media platform. (TikTok officially launched TikTok Shop in the U.S. in September, though sellers have complained about a flood of low-quality products on the platform).

Before Indonesia imposed its ban in September, the country’s president, Joko Widodo, complained that social media platforms were threatening local micro-, small- and medium-sized enterprises. Government officials also accused TikTok of engaging in predatory pricing.

GoTo’s deal with TikTok means the Indonesian tech giant is giving up its majority ownership of Tokopedia . Tokopedia started in 2008 and grew to be one of Indonesia’s largest e-commerce platforms. The company merged with ride-hailing startup GoJek in 2021, becoming GoTo Group. The company debuted on Jakarta’s stock exchange in April last year.

Yet the company has struggled to wow investors since then. GoTo has yet to make a profit since becoming a public company. The tech firm reported 2.4 trillion Indonesian rupiah ($147 million) in net losses last quarter, significantly less than the 6.7 trillion rupiah ($428 million) it lost this time last year.

Investors do not appear to be thrilled by the news of GoTo’s TikTok partnership. Shares fell by over 19% by 2:30pm Indonesia time on Monday, erasing gains made late last week as rumors began to build of the new partnership.

Subscribe to the new Fortune CEO Weekly Europe newsletter to get corner office insights on the biggest business stories in Europe. Sign up for free.



Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address
Continue Reading

SOCIAL

How to Train ChatGPT to Write in Your Brand’s Tone of Voice [Infographic]

Published

on

How to Train ChatGPT to Write in Your Brand’s Tone of Voice [Infographic]

Are you looking for ways to improve your ChatGPT output? Want to train it to write in a more unique tone of voice, in order to better suit your branding?

The Creative Marketer shares his ChatGPT prompt tips in this infographic. To enact these, add “Write like [INSERT CHARACTER]” at the start of your ChatGPT instructions.

TCM breaks things down into the following categories:

  • Innocent
  • Sage
  • Explorer
  • Ruler
  • Creator
  • Caregiver
  • Lover
  • Hero
  • Everyman
  • Magician
  • Jester
  • Outlaw

Check out the infographic for more information.

A version of this post was first published on the Red Website Design blog.

Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address
Continue Reading

SOCIAL

Elon Musk reinstates far-right conspiracy theorist Alex Jones on X

Published

on

Conspiracy theorist Alex Jones has been reinstated on X, formerly known as Twitter, by company owner Elon Musk

Conspiracy theorist Alex Jones has been reinstated on X, formerly known as Twitter, by company owner Elon Musk – Copyright GETTY IMAGES NORTH AMERICA/AFP/File Joe Buglewicz

Elon Musk, the billionaire owner of X, on Sunday reinstated far-right conspiracy theorist Alex Jones on the social media platform, a year after vowing never to let him return.

Jones, who claimed that a December 2012 school shooting in Newtown, Connecticut that killed 20 children and six educators was a hoax, was banned from the platform — then still known as Twitter — in 2018 for violating its “abusive behavior policy.”

He was also sued by families of the victims of the Sandy Hook school shooting and ordered by a judge in the case to pay up more than a billion dollars in damages last year.

Musk had himself promised never to let the Infowars host back on the social media platform, which he bought last year for $44 billion.

But following a poll Musk conducted on X asking whether Jones should be reinstated, to which some two million users responded, he flipped that decision.

“I vehemently disagree with what he said about Sandy Hook, but are we a platform that believes in freedom of speech or are we not?” the SpaceX founder said on X.

But Shannon Watts, founder of the group Moms Demand Action group which pushes for tighter gun laws, said that “defamation is not free speech.”

Musk’s decision comes the same week that the Sandy Hook families commemorate the 11th anniversary of the December 14 shooting, which Jones alleged was staged to allow the government to crack down on gun rights.

Jones’ followers harassed the bereaved families for years, accusing parents of murdered children of being “crisis actors” whose children had never existed.

It also came a week after Musk had responded to advertisers pulling out of X because of far-right posts and hate speech, including an apparent endorsement by Musk himself of an anti-Semitic tweet.

Asked whether he would respond to the advertising exodus, Musk said in an interview with journalist Andrew Ross Sorkin that the advertisers could “go f*** yourself.”

Jones, who has a million followers on X, returned to the site with his first post re-tweeting Andrew Tate, the controversial former kickboxer facing rape and human trafficking charges in Romania, in which he hailed Jones’ “triumphant return”

US media reported that as of Sunday, the account of Jones’ controversial show Infowars was still banned.

Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address
Continue Reading

Trending