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Pinterest Adds 2 Million Users in Q1, Flags Ongoing Revenue Impacts

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Pinterest Adds 2 Million Users in Q1, Flags Ongoing Revenue Impacts

Some not-so-great numbers in Pinterest’s latest performance update, with revenue increasing year-over-year, but declining quarter-over-quarter, while user growth has returned, though only slightly, with 2 million more monthly actives logging in in Q1.

As you can see in this chart, Pinterest usage has declined significantly from its peaks early on in the pandemic, when it was the big winner of the forced eCommerce push due to lockdowns and other pandemic mitigation measures.

With people stuck at home, they turned to Pinterest to browse and shop, which pushed the app up to 478 million users. It’s been on the decline ever since – though it may now be stabilizing at 433m.

As explained by Pinterest:

In Q1 2022, we continued to experience year-over-year engagement declines primarily due to pandemic-influenced growth in the year-ago quarter as well as lower search traffic (largely driven by Google’s algorithm change in November 2021). Time spent on competitive video-centric consumer platforms remains a headwind, particularly in our more mature markets. These declines were most pronounced for our desktop web and mobile web users, with mobile app users showing more resilience. The decline in global MAUs from February 1 to March 31 was primarily due to Russia’s recent invasion of Ukraine, and was particularly pronounced in Europe.”

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So the war in Ukraine is a factor here, as it will be for almost all social apps.

On balance, that could suggest that Pinterest is actually stabilizing pretty well, with a solid user base that it can then pitch ads to, while also increasing its appeal to brand partners. Pinterest’s focus is on becoming a key hub for shopping, and it may well be able to fulfill that niche – though I do think the mention of the impact of a Google change is an ongoing concern.

Google is essentially looking to build in the same areas, with increased emphasis on product discovery and shopping. And if Google has the power to hurt Pinterest’s results so significantly, what’s to stop them doing so again, if it feels that Pinterest is intruding on its turf? At some stage, there would be a question about anti-competitive behavior, but I’m not sure that Pinterest has adequately detailed how it plans to mitigate this impact moving forward.

In terms of revenue, as noted, Pinterest posted a better YoY result, though it’s actually declined on a quarterly basis.

Pinterest q1 2022

It’s hard to take anything definitive from that, though Pinterest points to the decline in active users as being a key cause, with its processes actually working well to better monetize the audience that it does have in the app.

Pinterest Q1 2022

As you can see in these charts, Pinterest is also highly reliant on the North American market for its revenue intake, which points to more opportunities as it branches out into new areas, while Pinterest also notes that the number of Pinners engaging with shopping surfaces has continued to grow year over year.

So there is significant potential there, if you dig a little deeper. How much you want to bank on Pinterest being able to capitalize on such comes down to your perspective, and your view of the latest usage trends in the app.

But there’s clearly still opportunity on Pins, even if it’s not hitting the highs it was early in the pandemic, and there is still opportunity for Pinterest to carve a niche within the eCommerce sphere, becoming a virtual shopping mall for a wide range of artisan goods.

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Pinterest has continued to evolve its discovery tools, and newer elements like Idea Pins are showing promise (Idea Pins grew 17x year over year) – and the fact that 90% of weekly active Pinners use the app to inform their purchase decisions can’t be overlooked.

But just how big can Pinterest actually be?

Slowing growth, even as it expands into new markets, is not a good sign – and you can expect the market to react in kind – while it still remains to be seen what, exactly, is a realistic expectation for the app, in the wake of the pandemic push for online shopping.

Can Pinterest get things back on track, and get back to solid growth, and become a more essential shopping companion for more users, or is that COVID bump now gone and this is what it stabilizes to?

Depending on your target market, the total usage number itself may not matter, and it’s definitely worth familiarizing yourself with Pinterest’s ever-improving analytics tools to get a gauge on the potential for your products.

But right now, it’s also not an essential platform, and the lack of significant growth is not going to spark a bigger rush on Pin ads moving forward.

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And again, there is also the question of competition with Google, and how much the search giant will allow Pinterest to grow, and encroach on its own core functionality.

Many questions remain, and while the results here are okay, they don’t provide a heap of answers at this stage.

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Snapchat Explores New Messaging Retention Feature: A Game-Changer or Risky Move?

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Snapchat Explores New Messaging Retention Feature: A Game-Changer or Risky Move?

In a recent announcement, Snapchat revealed a groundbreaking update that challenges its traditional design ethos. The platform is experimenting with an option that allows users to defy the 24-hour auto-delete rule, a feature synonymous with Snapchat’s ephemeral messaging model.

The proposed change aims to introduce a “Never delete” option in messaging retention settings, aligning Snapchat more closely with conventional messaging apps. While this move may blur Snapchat’s distinctive selling point, Snap appears convinced of its necessity.

According to Snap, the decision stems from user feedback and a commitment to innovation based on user needs. The company aims to provide greater flexibility and control over conversations, catering to the preferences of its community.

Currently undergoing trials in select markets, the new feature empowers users to adjust retention settings on a conversation-by-conversation basis. Flexibility remains paramount, with participants able to modify settings within chats and receive in-chat notifications to ensure transparency.

Snapchat underscores that the default auto-delete feature will persist, reinforcing its design philosophy centered on ephemerality. However, with the app gaining traction as a primary messaging platform, the option offers users a means to preserve longer chat histories.

The update marks a pivotal moment for Snapchat, renowned for its disappearing message premise, especially popular among younger demographics. Retaining this focus has been pivotal to Snapchat’s identity, but the shift suggests a broader strategy aimed at diversifying its user base.

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This strategy may appeal particularly to older demographics, potentially extending Snapchat’s relevance as users age. By emulating features of conventional messaging platforms, Snapchat seeks to enhance its appeal and broaden its reach.

Yet, the introduction of message retention poses questions about Snapchat’s uniqueness. While addressing user demands, the risk of diluting Snapchat’s distinctiveness looms large.

As Snapchat ventures into uncharted territory, the outcome of this experiment remains uncertain. Will message retention propel Snapchat to new heights, or will it compromise the platform’s uniqueness?

Only time will tell.

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Catering to specific audience boosts your business, says accountant turned coach

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Catering to specific audience boosts your business, says accountant turned coach

While it is tempting to try to appeal to a broad audience, the founder of alcohol-free coaching service Just the Tonic, Sandra Parker, believes the best thing you can do for your business is focus on your niche. Here’s how she did just that.

When running a business, reaching out to as many clients as possible can be tempting. But it also risks making your marketing “too generic,” warns Sandra Parker, the founder of Just The Tonic Coaching.

“From the very start of my business, I knew exactly who I could help and who I couldn’t,” Parker told My Biggest Lessons.

Parker struggled with alcohol dependence as a young professional. Today, her business targets high-achieving individuals who face challenges similar to those she had early in her career.

“I understand their frustrations, I understand their fears, and I understand their coping mechanisms and the stories they’re telling themselves,” Parker said. “Because of that, I’m able to market very effectively, to speak in a language that they understand, and am able to reach them.” 

“I believe that it’s really important that you know exactly who your customer or your client is, and you target them, and you resist the temptation to make your marketing too generic to try and reach everyone,” she explained.

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“If you speak specifically to your target clients, you will reach them, and I believe that’s the way that you’re going to be more successful.

Watch the video for more of Sandra Parker’s biggest lessons.

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Instagram Tests Live-Stream Games to Enhance Engagement

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Instagram Tests Live-Stream Games to Enhance Engagement

Instagram’s testing out some new options to help spice up your live-streams in the app, with some live broadcasters now able to select a game that they can play with viewers in-stream.

As you can see in these example screens, posted by Ahmed Ghanem, some creators now have the option to play either “This or That”, a question and answer prompt that you can share with your viewers, or “Trivia”, to generate more engagement within your IG live-streams.

That could be a simple way to spark more conversation and interaction, which could then lead into further engagement opportunities from your live audience.

Meta’s been exploring more ways to make live-streaming a bigger consideration for IG creators, with a view to live-streams potentially catching on with more users.

That includes the gradual expansion of its “Stars” live-stream donation program, giving more creators in more regions a means to accept donations from live-stream viewers, while back in December, Instagram also added some new options to make it easier to go live using third-party tools via desktop PCs.

Live streaming has been a major shift in China, where shopping live-streams, in particular, have led to massive opportunities for streaming platforms. They haven’t caught on in the same way in Western regions, but as TikTok and YouTube look to push live-stream adoption, there is still a chance that they will become a much bigger element in future.

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Which is why IG is also trying to stay in touch, and add more ways for its creators to engage via streams. Live-stream games is another element within this, which could make this a better community-building, and potentially sales-driving option.

We’ve asked Instagram for more information on this test, and we’ll update this post if/when we hear back.

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