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As the lockdown eases, Pinterest has lost 24 million users in the past three months, with US users dropping to 5% annually find out more by reading the full article!
As per Pinterest
“Fewer MAUs came to Pinterest during Q2 than we expected. The primary driver of the slower year-over-year MAU growth globally, and year-over-year MAU declines in the US, was the widespread easing of pandemic restrictions.
As lockdowns lifted, people spent less time at home in Q2 2021 vs. Q2 2020. Given that many of Pinterest’s core use cases (e.g., decor, garden, cooking, DIY) are especially relevant at home, we believe we disproportionately benefited from increased time spent at home during pandemic lockdowns.”
What is important here?
As a result of the pandemic last year, the results for this year will inevitably look bad compared to last year’s. I would say that 454 million overall users represent a steady growth trajectory over the long run.
However, adding 62 million more users in the past year was not sustainable, which somewhat exacerbates the losses.
A more relevant comparison is Pinterest’s user count, which leaped from 367 million during Q1 20 to 416 million during Q2 20. That is the platform’s biggest quarter-on-quarter increase (49%).
On average, Pinterest would have posted 17.4m new users per quarter over the past year if not for the subsequent pandemic influx, and based on its current user count (454m). However, COVID-induced muddies these comparisons with a much more variable set of characteristics.
What does Pinterest have to say?
According to Pinterest, one of the specific impacts of the retail re-opening was fewer people using the platform via the web, which led to a downward trend in usage numbers.
Furthermore, Pinterest reports that users of the web-based Pinterest app generate less revenue and are less engaged than those who use the app on their mobile devices.
“In Q2, MAUs on our mobile apps grew in the US year over year, and grew by more than 20% internationally.”
In other words, if you are targeting Pin users on the web, or if your target market is primarily desktop users, it may not be the best outreach option for your brand.
Pinterest does, however, note that both shopping and search engagement, overall, remain solid, so people are still discovering new products and brands, and buying through the app.
By allowing brands to have more shoppable Pins, and providing brands with the opportunity to reach out to consumers, you have improved the feed ingestion process (catalog uploads increased 50% quarter over quarter in Q2).
Essentially, what this means is that while Pinterest may not have as many users, overall, the users that it does have may prove to be just as valuable, if it can continue to refine and improve its in-stream buying experiences. That’s largely reflected in Pinterest’s Average Revenue Per User stats, which have increased on Q1.