Pinterest Skyrockets in Growth After Major investments

By Jody Ray Bennett February 07, 2013

Online scrapbooking site, Pinterest, saw massive growth over the last 12 months, which it was reported to be having difficulty handling with its 20-strong staff. Since then, however, the site’s employee numbers have grown to around 100 and they have moved offices from a small building in Pal Alto, CA, to a warehouse office in San Francisco. The site is now fixing its attention on generating revenue, with advertising systems, online retail profit-sharing and traffic partnerships all in development, according to a report yesterday from the Wall Street Journal.

Although so far unprofitable, this rapid growth, development and future promise has attracted the attention of investors, who have valued the site at between $2 billion and $2.5 billion during financing talks with Pinterest themselves. The site was last financed in May 2012, to the tune of $100 million, by Japanese company Rakuten.

Business partnerships Pinterest have been developing over the last twelve months include the site Allrecipes.com, which has been a long-standing user and has enjoyed traffic surges from the site since 2011 – up to 6.5 times more than from their Facebook page. Since first partnering with Pinterest, Allrecipes.com is now often given previews of upcoming code-changes and consulted on partnership opportunities.

As part of their expansion and revenue-generating plans, Pinterest has an international site set for launch later this year, as well as a mobile app. The site is also expecting to increase its employee count to around 200 by the end of the year, and sees the future of their service as a highly-personalised and simpler one.

Businesses are particularly interested in Pinterest, over competitors such as Facebook or Twitter, because of the life-cycle of “pinned” content. Brian Madden, Executive Director of Social Media for Hearst Corporation’s Heart Digital Media, explained that the longevity of content on Pinterest was particularly valuable to them and this is reflected in the numbers; traffic to Hearst’s brand through Pinterest is often double that of Facebook- and Twitter-generated traffic combined.




Edited by Amanda Ciccatelli

TechZone360 Contributing Writer

SHARE THIS ARTICLE
Related Articles

Cortana/Siri vs. Alexa & The Road To Robotic Post Smartphone Era

By: Rob Enderle    5/3/2016

Last week Microsoft made it clear that Cortana would only work with Microsoft's browser and search products making people question its cross platform …

Read More

Looking For The Next iPod/Echo

By: Rob Enderle    4/29/2016

The Amazon Echo, not the Apple Watch, became the last iPod-like product largely because of a far more accessible price point, a more compelling name, …

Read More

Apple Needs Reset, Not Elon Musk

By: Doug Mohney    4/29/2016

Apple's 13 percent sales decline and subsequent stock price drop this week has lead to the usual crazy talk about how to "fix" the company. Vivek Wadh…

Read More

Is the Apple Bubble Finally Bursting?

By: Andrew Bindelglass    4/28/2016

Over the past 13 years, Apple has been one of the most successful companies in the world of tech, posting sales growths in 51 straight quarters. That …

Read More

Shared-Space Providers (Airbnb) Poised to Beat Ride-Sharers (Uber)

By: Steve Anderson    4/28/2016

Travel may be starting to make a bit of a comeback, as a new report suggests that shared-space providers like Airbnb and WeWork are on the rise.

Read More