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Pinterest PINS will launch its advertising platform for Brazilian marketers to tap business opportunities among its 46 million users in the country. The expansion could also open up new opportunities for existing brands looking to reach new markets.
Pinterest Ads has been opened to a small group of early partners in Brazil, including Amaro, Diageo, Eudora, Mobly, O Boticário, Samsung and Westwing.
The expansion of Pinterest ads into Brazil is the platform's first push into South America, following Europe with launches awaited in more countries including Mexico, Argentina, Chile and Colombia in the near term.
Pinterest, Inc. Price and Consensus
Pinterest, Inc. price-consensus-chart | Pinterest, Inc. Quote
Pinterest Emerging as an Advertising Powerhouse
Pinterest generates the bulk of its revenues from users in the United States and has expanded well in international markets of late, with the platform's active audience outside the United States growing by 46% year over year throughout 2020.
While it still trails Facebook FB by a big margin, Pinterest is now the second most-used social platform in the Brazilian market. Markedly, around half of the women in Brazil, 45% of Gen Z population and 60% of moms in Brazil use Pinterest.
The company is increasingly establishing a unique value proposition for advertisers that could provide a competitive advantage in the long haul.
Small businesses and “Direct-to-consumer” brands, alike, are increasingly embracing Pinterest’s platform, driven by stay-at-home trend. This, in turn, has opened up new business avenues for Pinterest in the recovering digital marketing and advertising domain.
Per an eMarketer update, increasing investments in mobile, video ads, connected TV (CTV) and programmatic transactions are expected to facilitate a recovery in 2021, with U.S. programmatic digital display spending set to hit $79.61 billion.
Enhanced product offerings, wider Pinner and advertiser base, simplified ad systems through Verified Merchant Program and Pinterest Partners Program for small businesses are key catalysts for growth in 2021.
On Mar 3, 2021 Pinterest hosted its first global advertiser summit, Pinterest Presents, in which the company rolled out its latest ad product updates, including Pinterest Premiere, a new video ad solution, enabling advertisers to engage their audiences at scale thanks to exclusive video placement.
Moreover, the company released Pinterest Trends and Conversion Insights, the latest planning and measurements tools that will show actionable insights to help advertisers optimize their performances and opportunities to reach consumers.
This Zacks Rank #2 (Buy) company also unveiled a new study on Gen-Z and men users, offering advertisers key insights into two audiences that are key drivers of Pinterest’s new user growth in the United States. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Moreover, the pandemic has bolstered digital media consumption with consumers spending more time indoors on various media platforms and streaming video services. In fourth-quarter 2020, the number of boards created on Pinterest globally increased 50% year over year. Pinterest witnessed growth in boards created in core Pinterest categories, including a 49% increase in beauty, a 103% increase in women’s fashion and a 37% increase in home decor.
This rapid change in customer preference is a boon for Pinterest’s digital marketing services. Moreover, the launch of a new app with Shopify SHOP, giving Pinterest’s more than one million merchants a quick way to upload catalogs to Pinterest and turn their products into shoppable Product Pins in just a few clicks, is expected to improve advertiser engagement and experience on the platform.
However, increasing competition for ad dollars globally from the likes of Facebook, Amazon, Google and Twitter TWTR is a major headwind for the company.
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