How does Pinterest make money?

Pinterest makes money by allowing advertisements on its platform, and the company generates a lot of advertising revenue specifically from promoted pins. Most of the company's profits come from advertising, but there are also a few other ways Pinterest generates revenue. Here are the different ways Pinterest makes money:

• Advertising for Brands

Pinterest sells brand ads for advertisers to optimize their campaigns. This enables them to center their ad campaigns around specific points, like impressions or views. These types of ads are best for companies seeking to expand their brand awareness. The ads come up on:

• A pinner's home feed

• Search results pages

Brand ads have a similar visual aesthetic to organic pins on Pinterest. They also have the ability to be saved to clipboards.

• Performance Ads

This type of advertising sees companies using Pinterest to optimize their ad campaign by centering it around engagement with pinners, especially conversion events and clicks. Like brand ads, these pins also have a similar visual aesthetic to organic pins on Pinterest and can be saved to a pinboard.

• Collaborations and Partnerships

Pinterest also generates revenue from partnerships and collaborations. The social media company has a list of partners advertisers can utilize depending on their specific ad strategy. They can assist with content, audience targeting, creative vision, buying experience, and performance measurement. Here are some of the companies Pinterest partners with:

• Neustar

• Bluxome.co

• Shopify (SHOP)

• Vidmob

Though it is not public, it is assumed that Pinterest receives referral bonuses from these partners. They also are able to generate money from pins with a Buy it option. This enables users to buy pinned products directly from Pinterest from partners. Pinterest then receives commissions from these sales.

• Influencers

Pinterest offers influencers paid content opportunities through what is called Creator Rewards. This enables different companies to work with influencers on Pinterest's platform. When these collaborations occur, Pinterest receives a portion of the profits generated by the collaboration.

• Acquired Businesses

Pinterest has sought out acquisitions of several companies since its founding. The companies that Pinterest has acquired might also generate the company revenue. Although, many of the companies were acquired by Pinterest so that it could take in their creative teams, so some are not currently operating.