Pinterest certainly has the potential to bring in massive amounts of cash. After conducting research over Pinterest's source(s) of income, no definitive answer was found to describe precisely its formula for revenue generation. Several articles though, did mention the appearance of 'promoted pin' advertisements making their way into Pinterest boards in the near to present future. Promoted pins will function as marketing campaigns on Pinterest targeted to users based on their Pinterest social activities. Revenues will be brought in through CPC (cost-per-click) and CPM (cost-per-million-impressions) streams. The data in the modelled business canvas for Pinterest is based on data derived from CPC and CPM revenue streams for Facebook, applied to Pinterest's user base separated into its customer segments.
25% of Pinterest users today are accessing the application traditionally through desktop computer usage, while a whopping 75% of Pinterest users are mobile users. Another interesting point regarding Pinterest's user base is that only 15% of Pinterest users are men, while the remaining 85% are women. Estimates found in research conducted on Pinterest state that the current user base is either 35 million or 70 million users. 35 million was chosen to model the earning potential of Pinterest as it seems this would be the minimum amount of users as 35 million is on the lower end, therefore having the model represent the minimum amount of profit potentially derived for the company.
The results came in at a potential $350,000,000 profit generation for one year from the modelled user base. This means that Pinterest would be making $10 per user, per year. This certainly beats the $3.20 per user, per year that Facebook boasts. No wonder the company has had sky high, limitless valuations over the last couple of years; cheers to you Pinterest, you are the data king of the internet!
References:
1 - Pinterest gets serious about ad revenue with new ‘promoted
pins’
2 - Pinterest Advertisers Could Start Paying For Promoted
Pins As Early As Next Month
3 – Facebook Now Making $0.80 Per Mobile User
4 – Pinterest Cut Costs from $54 to $20 Per Hour With
Automatic Shutdowns | Hacker News
5 – Pinterest Salaries | Glassdoor.ca
No comments:
Post a Comment