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Why did I buy $PINS?
Pinterest is the leader in online serendipitous discovery and planning, an emerging behavior.
Pinterest is a complement to Google.
Let me explain https://playingfordoubles.substack.com/p/why-i-bought-pinterest-stock
Pinterest is the leader in online serendipitous discovery and planning, an emerging behavior.
Pinterest is a complement to Google.
Let me explain https://playingfordoubles.substack.com/p/why-i-bought-pinterest-stock
Google services specific intent. When you type a query, you know what you want.
With Pinterest, people don’t know what they want. Instead, they are seeking ideas.
$PINS has created a rich visual language to help people browse & discover things online.
This is a strong moat.
With Pinterest, people don’t know what they want. Instead, they are seeking ideas.
$PINS has created a rich visual language to help people browse & discover things online.
This is a strong moat.
$PINS is doing with Visual Discovery what $GOOG did with Search.
Google’s language was simple. They asked us to type in keywords and hit Search. In return Google presented 10 blue links.
Pinterest is trying to do something similar, but with a powerful visual language instead.
Google’s language was simple. They asked us to type in keywords and hit Search. In return Google presented 10 blue links.
Pinterest is trying to do something similar, but with a powerful visual language instead.
Pinterest enables the Visual Discovery Journey.
Unlike Search, which tries to answer objective questions, the Discovery process is subjective.
Discovery tries to help us answer questions like “how should I decorate my room?”
Such questions have no single right answer.
Unlike Search, which tries to answer objective questions, the Discovery process is subjective.
Discovery tries to help us answer questions like “how should I decorate my room?”
Such questions have no single right answer.
Instead, the answer depends entirely on personal taste.
In answering such questions, Pinterest builds the tools to help you explore the vast possibilities, and to help find the answer that’s right for you... just you.
Here's how.
In answering such questions, Pinterest builds the tools to help you explore the vast possibilities, and to help find the answer that’s right for you... just you.
Here's how.
You start by browsing Pins (images) & tapping on the ones that interest you. You can then learn more about this pin, including the idea & content behind it. You can then save it "Pin it" into visual collections called Pinboards: Personal, shareable, & ever evolving vision boards.
$PINS makes it easy to compare and evaluate similar objects based on the details of the content behind the images you tap, browse, classify and save.
This process helps people to discover new things, to be creative, & ultimately to be inspired to then go and try those things.
This process helps people to discover new things, to be creative, & ultimately to be inspired to then go and try those things.
Unlike $AMZN, which is a utility, Pinterest facilitates a fun inspirational journey on the path to purchase.
This reminds me of the early days of $EBAY, where people got the feeling of “winning” at the end of an auction.
Similarly, Pinners love the treasure hunt.
This reminds me of the early days of $EBAY, where people got the feeling of “winning” at the end of an auction.
Similarly, Pinners love the treasure hunt.
Pinterest has a growing competitive advantage: I believe it is a hidden monopoly.
The above visual language and discovery process is unique to Pinterest.
On the Internet, “to Pin” means to save an image on Pinterest.
The above visual language and discovery process is unique to Pinterest.
On the Internet, “to Pin” means to save an image on Pinterest.
Pinterest benefits from a classic user generated content flywheel. See image.
This in turn helps Pinterest build its proprietary object graph, and codify people's individual tastes...at scale!
See image for Pinterest's Flywheel
See image for Pinterest's Flywheel
This flywheel has resulted in a large and engaged audience (over 400 million monthly active users).
Pinterest is now trying to leverage this asset to create a valuable advertising business.
Pinterest is now trying to leverage this asset to create a valuable advertising business.
A Pinner's discovery journey often leads to inspiration & action.
Eg: If a user spends a lot of time trying to answer the question “how should i decorate my room?”, at some point, they may act on their ideas & actually paint that room, or buy some furniture or wall art.
Eg: If a user spends a lot of time trying to answer the question “how should i decorate my room?”, at some point, they may act on their ideas & actually paint that room, or buy some furniture or wall art.
Advertisers want access to such people & their latent purchase intent.
To effectively monetize its users however, Pinterest must
(1) Continue to expand its suite of advertising products and self-serve capabilities
(2) Demonstrate Strong Advertiser ROI
(3) Increase Ad Load
To effectively monetize its users however, Pinterest must
(1) Continue to expand its suite of advertising products and self-serve capabilities
(2) Demonstrate Strong Advertiser ROI
(3) Increase Ad Load
$PINS' global ARPU was just $0.77 in Q1 ($0.70 in Q2). This is tiny, both on an absolute & relative basis.
$PINS has a realistic opportunity to surpass the ARPU gap that exists between it other networks like $TWTR & $SNAP.
$PINS' ARPU can be multiples higher than it is today.
$PINS has a realistic opportunity to surpass the ARPU gap that exists between it other networks like $TWTR & $SNAP.
$PINS' ARPU can be multiples higher than it is today.
At just above $1B in annual revenues, Pinterest is still in the early innings.
To invest today, you need to believe that Pinterest’s ad products and self-serve advertising tools will grow significantly over the next few years, thereby accelerating monetization.
To invest today, you need to believe that Pinterest’s ad products and self-serve advertising tools will grow significantly over the next few years, thereby accelerating monetization.
Advertisers are looking for new, easy to use, and effective advertising channels other than $GOOG & $FB, and are willing to test new channels.
$AMZN has benefited from this demand. So can $PINS. But Pinterest will need to demonstrate strong advertiser ROI to keep that budget.
$AMZN has benefited from this demand. So can $PINS. But Pinterest will need to demonstrate strong advertiser ROI to keep that budget.
The recent $PINS + $SHOP (Shopify) partnership is very exciting.
Shopify merchants can now easily upload their catalogs to Pinterest and turn their products into shoppable Product Pins.
Shopify merchants can now easily upload their catalogs to Pinterest and turn their products into shoppable Product Pins.
$PINS now gets to provide independent businesses an incredible new way to promote their brands and products.
This is a win in 3 ways:
1) It provides the Pinterest community, which often has shopping intent, access to even more products. This benefits their UGC flywheel.
This is a win in 3 ways:
1) It provides the Pinterest community, which often has shopping intent, access to even more products. This benefits their UGC flywheel.
2) It increases advertising demand from the long tail of independent businesses. This could be huge.
3) And it combats the coming signal loss.
As off site signal deteriorates, the quality, depth, & utility of data used by $PINS for targeting will become even more important.
3) And it combats the coming signal loss.
As off site signal deteriorates, the quality, depth, & utility of data used by $PINS for targeting will become even more important.
A move to “server to server” should mitigate some of the impact of signal loss, but it’s unclear by how much & how long this might take.
So ad networks that can bring offsite signal onsite will have a huge advantage.
The $SHOP partnership is the first step in doing just that.
So ad networks that can bring offsite signal onsite will have a huge advantage.
The $SHOP partnership is the first step in doing just that.
Signal loss is a real risk to the business, but it’s great to see Pinterest taking proactive steps to combat it.
See article for more details.
And Part 2 coming next week! https://playingfordoubles.substack.com/p/why-i-bought-pinterest-stock
See article for more details.
And Part 2 coming next week! https://playingfordoubles.substack.com/p/why-i-bought-pinterest-stock
