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Pinterest’s IPO Filing: How Google And Facebook Played A Part, And Pinterest’s Plans To Bounce Back

April 2, 2019 Victoria Pallien

Pinterest’s initial public offering (IPO) filing reveals just how much influence larger sites like Google and Facebook have over smaller entities.

The Google/Facebook Duopoly Negatively Impacts Pinterest

Pinterest, the creative network that users often turn to for do-it-yourself (DIY) projects and wedding planning inspiration, relies heavily on traffic from Google. The site also allows users to sign in with their Facebook accounts, which means the brand relies on Facebook, too.

The Google/Facebook duopoly has control over many sites, like Pinterest. Therefore, Pinterest’s successes and downfalls are often reactive as Google and Facebook rollout updates and algorithm changes.

pinterest

Pinterest Lost Traction After Google Algorithm Updates

Pinterest was negatively impacted after Google’s Q1 2018 update, which resulted in removal of Pinterest’s keyword landing pages in Google search results. "Our ability to appeal these actions is limited,” Pinterest said in the IPO filing, “and we may not be able to revise our search engine optimization (SEO) strategies to recover the loss in traffic or user growth resulting from such actions.”

Pinterest Users Decreased After Facebook Security Updates

In Q2 2018, Facebook changed its login authentication system, and Pinterest noticed the effects, seeing slowed user growth and suffering from a lack of engagement. Pinterest’s current monthly active user (MAU) count stands at 265 million.

Pinterest’s Revival May Be In Ecommerce

 

According to Pinterest’s IPO filing, the brand may be looking to become an ecommerce platform, competing against shoppable giants Instagram and Amazon.

After acknowledging setbacks and risks related to other digital moguls, like Google and Facebook, Pinterest’s IPO filing noted, “We plan to improve the utility of our service by making it easier for Pinners to go from inspiration to action. In particular, we want to make Pinterest more shoppable.”

Transforming Pinterest into an ecommerce platform will work well alongside their recently introduced shopping features. Because the site’s consumers have more diverse interests than just fashion, which is the primary focus of Instagram’s consumer base, Pinterest may be able to find success as an ecommerce site. But the company cautioned, “We are in the early stages of our monetization efforts, and there is no assurance we will be able to scale our business for future growth.”

While Pinterest has recognized obstacles, the brand has not admitted defeat. Pinterest, which The Motley Fool values at $12 billion, hasn’t announced the initial price of its shares but has introduced the concept of becoming a shoppable, ecommerce platform for consumers interested in food, interior design, fashion and more.

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About the Author

Victoria Pallien

Victoria Pallien is a Marketing Communications Writer at Digital Media Solutions (DMS), the fastest-growing independent digital performance marketing company. DMS helps its clients accelerate growth by deploying diversified and data-driven customer acquisition solutions that deliver scalable, sustainable and measurable marketing results. DMS performance marketing solutions connect the right consumers with the right offers at the right time to achieve the marketing objectives of our clients. DMS is continually innovating to provide new and emerging media and technology solutions that minimize waste and maximize results across the most competitive industries. Since its inception, DMS has demonstrated incredible year-over-year growth which has earned recognition on the Inc. 5000 list in 2014, 2015, 2016, 2017 and 2018.

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