Pinterest - Profitability

Topics: Website, Pin, Blog Pages: 2 (884 words) Published: May 9, 2013
The average Pinterest user is on 89 minutes a month while an average Twitter user is on 21 minutes a month. Pinterest can impact a user’s website traffic and increase salesPintrest: profitability –

( * secured $100 million in new financing, a deal that values the company at a cool $1.5 billion. While that's well short of Facebook's $100 billion value, Pinterest's new investors apparently believe that the site, which has never turned a profit, can transform itself into a money-making machine * but does Pinterest actually have the potential to be a cash cow? - "reverberating through e-commerce sites," says Nidhi Subbaraman at Fast Company. The pinned images serve as glowing advertisements for various products, and data shows that Pinterest inspires its 20 million users to buy an impressive amount of stuff. And Pinterest users "shop big — the average price tag is double that of a buy from a Facebook user." With that kind of a platform, it's easy to see how Pinterest could set up an advertising revenue model. * biggest investor in Pinterest, the Japanese e-commerce site Rakuten, knows that Pinterest "drives a lot of commercial traffic to retail sites, - Pinterest can also earn "commission for each sale" made through the site. * (sustainability) But Pinterest is vulnerable to lawsuits, because the site "effectively allows the copying of images that are often copyrighted." Advertisers won't mind, but "photographers and commercial organizations will," and the popularity of the site could diminish if users are restricted from pinning certain images.


* Social-network Pinterest has begun offering businesses new tools that help measure the number of visitors it sends their way, another step on the path to broadening its appeal with brands and making...
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