There are rumours that Google and Pinterest are testing Google ad units on the Pinterest app.
Investing.com noted on Tuesday that analysts have observed such ad units on the app in addition to other indications that collaboration is being explored in the US.
The analysts made this observation in a note on Tuesday, March 26.
Additionally, the analysts noted that the code might indicate that the ad units are associated with searches or that audience data is being used to retarget Pinterest users.
They added that it had been a year, in February 2023, since they had last seen Google ad units on Pinterest.
During the Q4 2023 earnings call, the firm emphasised the Google partnership, even though its performance fell short of analyst forecasts. While monthly active users increased to 498 million with an 11% year-over-year gain, Pinterest’s revenue for the quarter was $981 million, up 12% from the previous year.
Due to revenue that fell short of expectations, Pinterest’s stock dropped by over 28%. However, it rose after CEO Bill Ready revealed the Google acquisition. Positive outcomes have been observed by the company since it began implementing the new ad integration a few weeks ago, according to him.
The Piper Sandler note further stated that the testing indicates a quicker partnership rollout than Pinterest’s partnership with Amazon, which took six to nine months to roll out, and that Google ad units had previously been framed as bolstering Pinterest’s international business, rather than its U.S. business.
April 2023 saw Pinterest negotiate a multiyear agreement with Amazon Ads, which was the platform’s first outside advertising partner.
According to a report from April 2023, Pinterest’s Chief Revenue Officer Bill Watkins stated that the company’s fastest-growing revenue stream was retail ad catalogues.
When ads started to become a significant source of income for Pinterest, Watkins announced at the time that the company was changing its retail approach and investing in technology to “drive the best shopping experience fulfilled by merchants that are already on our platform.”