The pinboard style social-media company, Pinterest Inc (NYSE: PINS) delivered a loss as a result of restructuring, but continues to evolve on its way towards monetization or more precisely, to become the go-to place for digital window shopping. But the relatively recent CEO Bill Ready is aiming much higher than that as he aspires to create an algorithm that will support the ‘angelic’ side of the human nature and build a business model around it, one that is based on strong moral grounds.
The Shift To Video Content To Provide The Needed Monetization Boost
The platform will be combining Pins and Idea Pins into a single format, as the updated experience will embody video Pins and static images, along with features like stickers and overlay text. The introduced changes will enable Pinterest users to benefit from features that were only available to business accounts. Moreover, as all Pins will now come with the possibility to add links to anywhere, users will gain an increased monetizing ability of the content they post. Also, they will be able to measure their efforts better as all video Pins will have advanced metrics, which means Pinterest will come closer to its rivals such as Meta Platforms (NASDAQ: META)-owned Instagram. With Instagram and Facebook, Meta offered its users the ability to boost their sales by showcasing and advertising their products. Moreover, Meta went directly to open actual virtual ‘shops’ on its platform, but Pinterest brings the promise of allowing users to build a brand and show off what makes it unique as this platform differentiates itself from others by being the place where users go to get inspired. Moreover, it is an inclusive haven where there’s no fear of negative interactions. Pinterest is yet to monetize these precious values that even Meta is missing. It's safe to say that all social media platforms are working hard to show they are improving in this area.
Amazon To Help Pinterest Make Its Pins Shoppable
The beloved social media platform delivered a surprise with its latest earnings report as it announced it has joined forces with no other than the e-commerce titan Amazon.com Inc (NASDAQ: AMZN). This is undoubtedly a big win for Pinterest who has been long struggling with profitability despite a growing userbase. What’s interesting that Pinterest users already come to the platform with an intention of browsing on what to buy, yet the actual shopping process is not happening. Pinterest needs help to deepen its visual shopping strategy and there’s no better partner than Amazon when it comes to online shopping. By partnering with Amazon for third-party ads, Pinterest has gained access to more high impact brands, the chance to improve its ability to tailor content and the ability to create the best buying experience for its users. A multiyear collaboration with Amazon can be exactly what Pinterest needs to make every Pin shoppable but the result of this synergy will be seen later this year or at the beginning of next one.
Ready Has A Far More Ambitious (And Noble) Goal In Mind
According to Yahoo Finance, Ready has an even bigger picture in mind as he aspires to prove that a different business model can make social media work, as opposed to the current one which at its core prays upon the darkest aspect of human nature. Needless to say, Ready is showing the kind of accountability that is greatly missed in today’s world and not just when it comes to social media. Since its inception, Pinterest has differentiated itself in many good ways, but it now has the chance of becoming the white knight of the social media universe. If Ready succeeds in creating not only an algorithm that fuels users to make their lives better outside the screen but also shows that such a morally-grounded business model can work, he can certainly be proud of having made the world a far better place than it is today.
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