SOCIAL
Pinterest Holds at 433 Million Users, Posts 9% Increase in Revenue
The mixed results keep coming from Pinterest, which has today published its Q2 2022 performance update, which shows no growth in active users, and lower than expected revenue intake.
Still, analysts saw various positives in the numbers, particularly considering that they weren’t as bad as some had expected, given the broader economic downturn that’s impacted all social apps.
And there is another important point of note that could play a key role in Pinterest’s future direction.
First off, on users – Pinterest remains at 433 million monthly actives, the same figure that it posted in Q1, when its user count started to move in the right direction once again.
As you can see here, amid the pandemic, which forced more people into online shopping, Pinterest saw a big jump in interest, reaching 478 million actives at peak. But as COVID restrictions have eased, and physical shopping has resumed, those numbers have steadily declined – though Pinterest did add an additional 2 million in the last reporting period.
That, investors hoped, meant that Pinterest had reached its low mark, and would now stabilize and move back into growth. Which seems to be holding to a degree, and given the aforementioned impacts on the broader market, which have dragged down the results of all platforms, it seems like an okay result.
Pinterest saw its biggest declines in Europe, where Russia’s invasion of Ukraine has had, and will continue have, a range of ongoing impacts. Pinterest’s biggest growth, meanwhile, has come in the ‘Rest of the World’ category, which includes Latin America, where the platform is looking to maximize its business opportunities, along with developing markets like India and Indonesia.
That could signal significant opportunities for the app in these regions, with Latin America hosting some 80 million Pinterest users alone. And as its Average Revenue Per User charts show, regions outside of the US have a long way to go in catching up.
Pinterest is still in the process of rolling out its ad platform to all regions, so there’s a lot more potential there, which is partly why investors are still positive about the platform. That, along with the revelation, as reported by TechCrunch, that Elliott Investment Management recently took a 9% stake in the company, making it the single largest shareholder in the app.
Which could be a good thing – Elliott Management has a track record of buying up assets in companies that it believes could be performing better, then using its resulting influence to instigate effective change. Which is what led to Twitter ramping up its strategic plans, in the lead-up to the Elon Musk takeover push – but that could also mean that Elliott will also be pushing for similar changes and development acceleration at Pinterest at some stage too.
Which could squeeze more money out of the app, but it may mean a shake-up for those involved.
As per Elliott Management:
“Pinterest is a highly strategic business with significant potential for growth, and our conviction in the value-creation opportunity at Pinterest today has led us to become the Company’s largest investor. As the market-leading platform at the intersection of social media, search and commerce, Pinterest occupies a unique position in the advertising and shopping ecosystems, and CEO Bill Ready is the right leader to oversee Pinterest’s next phase of growth. We commend Ben Silbermann and the Board on the leadership transition, and we look forward to continuing our collaborative work with Ben, Bill and the Board as they drive toward realizing Pinterest’s full potential.”
Seems innocent enough, but it’s also a little ominous when you know of Elliott’s past initiatives as an activist shareholder group.
In terms of revenue, Pinterest is still improving, bringing in $665.9 million, up 9% year-over-year.
Again, you can see, from these charts, the potential for growth, and you can bet that Elliott will be pushing Pinterest to capitalize on these opportunities sooner rather than later.
Incoming CEO Bill Ready, who came across from Google in June to take the reigns from founder Ben Silbermann, may be in for a challenging time ahead as he works to manage expectations around such, while also maximizing development resources and growth.
And this won’t help:
“Our total costs and expenses grew 29% year over year due to headcount growth as well as increased infrastructure spend.”
More functionality requires more investment, and as Pinterest grows its ad platform, and engagement tools, it’s pumping more cash into development.
On this front, Pinterest has also launched a new app, called Shuffles for putting together collages using photos.
Not sure that it adds much to the overall Pin experience, but it points to the app’s ongoing direction, and focus on building in new elements.
In its accompanying notes and earnings call, Pinterest has outlined its key areas of growth, with video now up to 10% of time spend in the app.
And like all apps, Pinterest is also looking to move into line with the short-form video trend.
As per Pinterest CFO Todd Morgenfeld:
“We’re seeing relevance almost at parity across Idea Pins and our static images, which is a big improvement.”
Looking ahead, Pinterest has forecast ‘mid-single digit’ revenue growth for Q3, while expenses will grow ‘in the range of 35-40% year over year’.
So again, a mixed bag of results and insights, which either suggest that Pinterest is stabilizing, and may well be about to see a significant boost in growth and activity. Or that it needs to limit its expenses, in order to maximize its intake.
Either path could have a big impact, and it’ll be interesting to see if Pinterest accelerates its release schedule in the second half of the year.
SOCIAL
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.
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.
SOCIAL
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.”Â
“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.
“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.
SOCIAL
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.
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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