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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