Connect with us

SOCIAL

Pinterest Reports Slowing User Growth in Q2, More Engagement Among Younger Audiences

Published

on

Pinterest Reports Slowing User Growth in Q2, More Engagement Among Younger Audiences

Pinterest has published its Q2 2023 performance update, which shows some concerning signs for overall platform growth, though it is growing, which is a positive trend.

First off, on users. Pinterest added 2 million more users in Q2, taking it to 465 million monthly actives.

That’s Pinterest’s slowest growth rate in a year, though again, it is growing, which in itself is welcome news after the platform suffered a decline in usage following the pandemic bump.

In Q1 2021, at the height of the COVID lockdowns, when everyone was seeking alternative shopping options, Pinterest rose to 478 million users, before sliding back over the next year to 431 million. Since then, it’s been steadily regaining its footing, so while its growth has slowed in this quarter, it is maintaining an upward trajectory, though slower growth will logically spook the market.

What’s particularly concerning in this respect, however, is that Pinterest is actually losing ground in its most lucrative user markets. U.S. growth has stagnated, while European usage declined, with all of its new users coming from the ‘Rest of the World’ category.

Which just doesn’t generate as much revenue for the app.

Pinterest Q2 2023

Pinterest is clearly reliant on the North American market, and while global expansion will facilitate new opportunities, as you can see in these charts, the revenue impact of such pales in comparison to its key centers.

The fact that EU users are seemingly losing interest is a concerning sign, while Pinterest needs to see at least some growth in the US to boost its revenue potential. It hasn’t increased its US user count for essentially a year now, and that’s something that’ll come under more scrutiny as analysts look to project the app’s future potential.

But right now at least, Pinterest is maintaining revenue growth, posting a 6% year-over-year increase to $705 million for the period.

Pinterest Q2 2023

It’s steady, and it’s not going to blow anybody away. But along with cost-reduction measures, Pinterest is maintaining its margins, and growing its business opportunities, which will see it hold firm for now amid shifting market conditions.

In terms of usage, Pinterest says that sessions, impressions, and Pin saves all grew faster than MAUs, which it claims is indicative of it ‘deepening engagement with our user base’. In other words, while Pinterest may not be adding a heap of new users, those that are using the app are engaging for longer, and more often, so it’s in a better position to monetize its most engaged audience.

Though again, you would want more of these users to be in the U.S. and EU, but 465 million engaged shoppers is still a very valuable audience, which many retailers, in particular, will be interested in.

Pinterest also notes that it’s seeing solid growth in usage among younger audiences:

“In Q2, Gen Z were our largest contributor to overall engagement growth and the fastest growing cohort, growing double digits and accounting for a larger portion of our overall mix.”

That’s also a good indicator for future success, but a lot of this is projecting forward, with the immediate results reflecting more of a holding pattern for the app.

Pinterest also says that it’s seeing engagement growth in various key verticals, including men’s fashion, autos, health, and travel, again highlighting expanded opportunity.

Auto marketing has emerged as a bigger focus for the app, in a niche that many wouldn’t expect, and it’s worth highlighting in this context, as Pinterest does see a lot of engagement in several verticals that are outside of its normal DTC focus.

So what do these results suggest for marketers?

Pinterest remains a potentially valuable consideration for a wide range of brands, and really, you need to explore the app for yourself to understand your opportunities, and how brands in your niche are performing.

465 million users is a big audience, with a wide range of interests, and you can use tools like Pinterest Trends to get a handle on what people are engaging with, and how that relates to your business.

It’s not exploding with new users, and some of the growth numbers here are a concern. But with such a big group of users coming to the app with shopping intent, there are still significant opportunities for the right brands.

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 announces $1.5 bn deal to restart Indonesia online shopping business

Published

on

TikTok has around a billion montly users and its growth among young people far outstrips its competitors

TikTok has around a billion montly users and its growth among young people far outstrips its competitors – Copyright AFP/File SEBASTIEN BOZON

Chinese-owned short video app TikTok on Monday announced a $1.5 billion investment in GoTo group in a deal that would allow it to restart its online shop in Indonesia, the companies said in a statement.

Under the deal, TikTok Shop will be merged into GoTo’s Tokopedia, and TikTok will have a controlling stake in that entity.

“TikTok has committed to invest over US$1.5 billion in the enlarged entity over time, to provide future funding required by the business, without additional dilution to GoTo,” the Indonesian firm said.

“TikTok, Tokopedia and GoTo will transform Indonesia’s e-commerce sector, creating millions of new job opportunities over the next five years.”

“The strategic partnership will commence with a pilot period carried out in close consultation with and supervision by the relevant regulators,” GoTo said, adding that it expected the deal to close in 2024.

TikTok in October shut down its online shop in Indonesia, one of its biggest markets.

That came days after Southeast Asia’s largest economy banned sales on social media to protect millions of small businesses.

The regulation means social media firms cannot conduct direct transactions but only promote products on their platforms in Indonesia, the first country in the region to act against TikTok’s growing popularity as an e-commerce site.

Indonesia’s e-commerce market is dominated by platforms such as Tokopedia, Shopee and Lazada but TikTok Shop gained a significant market share since launching in 2021.

Indonesia, with 125 million users, is TikTok’s second-largest global market after the United States, according to company figures.

The Indonesian ban came after calls grew for regulation governing social media and e-commerce, with offline sellers seeing their livelihoods threatened by the sale of cheaper products on TikTok Shop and other platforms.

The regulation was yet another setback for TikTok, which has faced intense scrutiny in the United States and other nations in recent months over users’ data security and the company’s alleged ties to the Chinese government.

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

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

Trending