Pinterest's artificial intelligence-powered collage feature, coupled with computer vision technologies, is reportedly garnering three times more engagements than traditional pins.
The feature readily creates collages using pictures selected by users from websites, the users themselves, or Pinterest.
Collages are becoming increasingly popular; even though they take more effort than just saving a pin to a Pinterest board, the business informed investors during its Q1 2024 conference calls.
(Photo: by Justin Sullivan/Getty Images)
According to Bill Ready, Pinterest's CEO, collage pins are saved by users about three times more frequently than other types of pins on the platform, and a sizable percentage of them include clickable products.
He continues by saying that the company is witnessing a growth in the popularity of collages among Gen Z, who account for around 70% of collage makers.
In addition, the CEO thinks that increasing Pins' actionability is a crucial component of raising user satisfaction, strengthening engagement, and expanding the number of monthly active users.
Most notably, the collages' AI and machine vision-powered design makes them functional. Identifying an object from a photo and then "cutting out" or removing the subject with scissors is more effective than saving a picture (such as a.jpg or .png) and adding a link or note to it on Pinterest.
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Pinterest's Growth
In addition to expanding Pinterest's AI-powered collages, Ready mentioned that the business reached half a billion monthly active users in Q1 and reported a 23% increase in revenue, the firm's highest growth in both user base and revenue since 2021.
The CEO credits shoppability and AI investments for the company's growth. He cites factors that give advertisers even more significant returns and access to performance funds.
The CEO also asserts that the business is currently operating with extraordinary clarity and focus, delivering new experiences and products that consumers demand and, in the process, discovering their best product market fit in years.
Pinterest and Gen Z
Last year, Pinterest shares soared 17% in premarket trading on October 31. Reports state that this surge comes hot on the heels of an impressive quarterly performance that suggests Pinterest is making waves in the advertising world and, notably, attracting the attention of Generation Z.
Like its more established competitors, Pinterest has succeeded in the retail industry. According to the firm, more than 50% of its users see the platform—which is well-known for enabling users to create online pinboards—as a place to shop.
In an effort to increase user engagement, Pinterest has concentrated on improving its "shoppability."
Mark Shmulik, an analyst at Bernstein, expressed hope that if the company can translate that purpose into revenue over the coming years, there could be a possibility of accelerating profit growth beyond its base, moving it closer to its more deliberate, shopping-heavy competitors.
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