Pinterest's Chief Executive, Ben Silbermann, was interviewed by WSJ and discusses its first revenues planned for 2014 and how it'll achieve growth.
In less than four years, Pinterest Inc. Chief Executive Ben Silbermann has expanded his quirky site for online scrapbooking into a social-media tool used by one-fifth of online adults in the U.S.Pinterst Aiming For Revenues This Year With Ads [online.wsj.com]
For his next act, Mr. Silbermann aims to turn the site into a viable business.
Pinterest will generate its first revenue this year, when it begins charging advertisers to promote their wares to the site's millions of hobbyists, vacation planners and do-it-yourselfers. Ads on the site could generate as much as $500 million in 2016, estimates Michael Pachter, an analyst at Wedbush Securities.
it'll be interesting if we see any of it make a dent on the search engine revenues, specifically Google
Well, it isn't smart of Google to rank Pinterest boards so high in the search results. For almost any keyword in my niche there is a Pinterest board on the first page of the results. Google is constantly directing people to Pinterest boards and actually telling them that ... they don't need Google since they can find everything on Pinterest. It's almost like Google directing people to Bing when they search for something :-)
500 million in one year sounds like a pretty big dent. Is there any where to see how the analyst came up with his estimates? I have been using pinterest and like it more and more. I wonder if they will be doing any ad revenue sharing programs like Google?