Pinterest- An overview
Pinterest is an image-sharing social media service. People can find inspiration and ideas related to their interests and hobbies. Every thought or picture is referred to as a pin. These pins are linked back to their websites. This is how Pinterest helps its users to drive traffic and sales onto their websites.
Pinterest is free to use, both for individual people and businesses.
Read also: How can Pinterest be improved?
Reasons for the decline of Pinterest
1. Pinterest had gained around 478 million users by the start of 2021. but since then, the number of users has been continuously declining. In the past six months, the company's stocks have fallen by 56%.
In the first six months of 2021, Pinterest lost around 24 million of its monthly active users (MAUs). This rapid loss in the number of MAUs has had an adverse effect on the advertising revenue, which seems to be the primary source of income for the company.
2. Another reason for the decline in the number of users is the rumored takeover of Pinterest by PayPal. This news came out to be false later.
3. Furthermore, the company's ongoing struggle to improve the monetization of international users is yet another concern.
The average revenue per user is 15 times more in the US than in the rest of the world. Pinterest claims to be working towards introducing a toolkit to boost international monetization. But nothing has been done so far.
4. To add to the existing struggle, Pinterest has now joined hands with other social media platforms in claiming that changes in Apple's ios system are preventing them from tracking users on their platforms.
All of these reasons have equally contributed to the decline of Pinterest in the last few months. However, there is still scope for the company to regain its power if it can successfully address the existing issues.
