Pinterest announced on Thursday that it has signed a multiyear strategic ad partnership with Amazon to bring third-party ads to the platform. The deal, which makes Amazon Pinterest’s first partner on third-party ad, will increase the number of brands and relevant products on the platform, as well as provide customers with a smooth on-Amazon buying experience and deliver high performance for advertisers.
“This milestone partnership will add to the great brands already on the platform and provide more comprehensiveness, shoppability, and a best-in-class buying experience for users, along with greater performance for brands and advertisers,” said Bill Ready, CEO of Pinterest. “This aligns with our goal of making every Pin shoppable, so that we can enable as many users as possible to bring their dreams to life.”
Pinterest anticipated that the partnership will be implemented across several quarters, starting towards the end of 2023.
“Amazon Ads is delighted to partner with Pinterest and make it even easier for customers to discover and buy relevant products through shoppable content, while also providing differentiated value for brands,” said Paul Kotas, SVP, Amazon.
Pinterest outperformed expectations for Q1 sales and earnings, with revenue increasing by 5% year over year to $603 million, above the $598 million forecast, and adjusted EPS coming in at $0.08 instead of $0.02. Additionally, the business disclosed a GAAP net loss of $209 million, or 31 cents per share, up from 1 cent per share in Q1 2022.
The platform reached 463 million monthly active users for the quarter, an increase of 7% year-over-year. “Brands and products are a critical piece of this journey, enabling Pinners to move easily from inspiration to action and advertisers to realize value in connecting with users with high commercial intent. Our partnership with Amazon will allow us to scale these efforts in meaningful ways,” Pinterest said.