On April 27, 2023, $PINS announced
that it would open its platform to third-party advertising. As part of this announcement, management said that their first third-party advertising partner will be $AMZN
. With engagement with shoppable content growing on the Pinterest platform, it makes sense that partnering with Amazon on third-party ads was smart.
The benefits of this move are two, according to this article
- Opening its platform to third-party ads creates more demand for ad slots, which could potentially boost rates.
- Pinterest doesn't have to spend money to attract these small and medium-sized merchants on Amazon -- they're automatically opted in when they buy sponsored ads on Amazon's platform.
In other words, Pinterest can spend less to attract advertisers onto its platform while seeing its advertising revenues grow simultaneously. It's a massive win-win for both e-commerce merchants and for Pinterest.