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Home Social Media

Sociable: Pinterest’s user growth slows while engagement gains with younger audiences

August 18, 2023
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“Sociable” is the newest commentary on vital social media developments and trends from industry expert Andrew Hutchinson of Social Media Today.

Pinterest has published its Q2 2023 performance update, which shows some concerning signs for overall platform growth, though it’s growing, which is a positive trend. The latest update also shows vital gains amongst Gen Z users.

First off, on users. Pinterest added 2 million more users in Q2, taking it to 465 million monthly actives.

That’s Pinterest’s slowest growth rate in a yr, though again, it’s growing, which in itself is welcome news after the platform suffered a decline in usage following the pandemic bump.

In Q1 2021, at the peak of the COVID lockdowns, when everyone was searching for alternative shopping options, Pinterest rose to 478 million users, before sliding back over the subsequent yr to 431 million. Since then, it’s been steadily regaining its footing, so while its growth has slowed on this quarter, it’s maintaining an upward trajectory, though slower growth will logically spook the market.

What’s particularly concerning on this respect, nevertheless, is that Pinterest is definitely losing ground in its most lucrative user markets. U.S. growth has stagnated, while European usage declined, with all of its recent users coming from the ‘Rest of the World’ category.

Which just doesn’t generate as much revenue for the app.

Pinterest Q2 2023

Pinterest is clearly reliant on the North American market, and while global expansion will facilitate recent opportunities, as you possibly can see in these charts, the revenue impact of such pales as compared to its key centers.

The incontrovertible fact that EU users are seemingly losing interest is a concerning sign, while Pinterest must see no less than some growth within the U.S. to spice up its revenue potential. It hasn’t increased its U.S. user count for essentially a yr now, and that’s something that’ll come under more scrutiny as analysts look to project the app’s future potential.

But immediately no less than, Pinterest is maintaining revenue growth, posting a 6% year-over-year increase to $705 million for the period.

Pinterest Q2 2023

It’s regular, and it’s not going to blow anybody away. But along with cost-reduction measures, Pinterest is maintaining its margins, and growing its business opportunities, which can see it hold firm for now amid shifting market conditions.

In terms of usage, Pinterest says that sessions, impressions, and Pin saves all grew faster than MAUs, which it claims is indicative of it ‘deepening engagement with our user base’. In other words, while Pinterest is probably not adding a heap of latest users, those which are using the app are engaging for longer, and more often, so it’s in a greater position to monetize its most engaged audience.

Though again, you’d want more of those users to be within the U.S. and EU, but 465 million engaged shoppers remains to be a really worthwhile audience, which many retailers, specifically, might be inquisitive about.

Pinterest also notes that it’s seeing solid growth in usage amongst younger audiences:

“In Q2, Gen Z were our largest contributor to overall engagement growth and the fastest growing cohort, growing double digits and accounting for a bigger portion of our overall mix.”

That’s also indicator for future success, but lots of that is projecting forward, with the immediate results reflecting more of a holding pattern for the app.

Pinterest also says that it’s seeing engagement growth in various key verticals, including men’s fashion, autos, health, and travel, again highlighting expanded opportunity.

Auto marketing has emerged as a much bigger focus for the app, in a distinct segment that many wouldn’t expect, and it’s value highlighting on this context, as Pinterest does see lots of engagement in several verticals which are outside of its normal DTC focus.

So what do these results suggest for marketers?

Pinterest stays a potentially worthwhile consideration for a wide selection of brands, and really, it is advisable explore the app for yourself to grasp your opportunities, and the way brands in your area of interest are performing.

The 465 million users on Pinterest amount to a giant audience with a wide selection of interests, and you should use tools like Pinterest Trends to get a handle on what individuals are engaging with, and the way that pertains to what you are promoting.

It’s not exploding with recent users, and a few of the growth numbers listed below are a priority. But with such a giant group of users coming to the app with shopping intent, there are still significant opportunities for the best brands.

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