Tuesday, May 20, 2014

Pinterest Canvas



You would expect Pinterest to adopt a similar advertising model to that of Facebook, but they haven’t yet.  They currently only have two small sources of revenue despite their company being valued at around $3.8 billion.  They currently have a small stream of revenue from companies that “Rich Pin” which means they post real time data about prices or offers on Pinterest.  The other revenue stream is through the use of analytics generated by tracking what pictures are popular on Pinterest.  Pinterest probably keeps their cost fairly low because most of their product is user generated but the cost of maintaining servers and staff can still add up.  Many speculate that it will be difficult for Pinterest to capitalize on their high user count because it seems that they are slow to blatantly advertise.  While this lack of ads has allowed Pinterest to grow in popularity, it will be necessary for them to figure out how to monetize their product without turning customers away.

All data from an article found here:

http://qz.com/139156/how-pinterest-plans-to-make-digital-scrapbooking-worth-3-8-billion/

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