LiveRamp – Pinterest Team Up For Enhanced Global Integration
LiveRamp, a leading data collaboration platform, and Pinterest strengthened their partnership to give advertisers with improved global integration. Marketers will be able to target foreign consumers on Pinterest as a result of this collaboration. The alliance will make use of RampID, LiveRamp’s pseudonymous people-based identity.
LiveRamp and Pinterest primarily announced the arrangement earlier this year. According to the statement, it would use LiveRamp’s interoperable clean room technology as a shared area for marketers, publishers, merchants, and data owners to improve measurement without compromising data safety. The data cooperation tool provides marketers with a safe and secure platform to link certain first-party and Pinterest data in an encrypted environment.
How will Advertisers benefit?
Advertisers will benefit from improved measurement and analytics as a result of the Pinterest-LiveRamp integration. It will increase the number of options for brands to gain an advantage from first-party data. CPG buyers will use this partnership to reach their customers through retail media channels such as Carrefour and Albertsons. Marketers will gain from the integration since it will provide high-performance results, ROI, and perceptual insights.
Advertisers are emphasizing cookie-free marketing ahead of the 2024 deadline to eliminate third-party cookies from Chrome due to continued privacy concerns. This collaboration will provide them with LiveRamp’s 100% cookie-free implementation with Pinterest. Furthermore, it enables people-focused marketing, in which marketers do not have to give up control over consumers’ private data or disclose information beyond their business.
Why Pinterest?
Pinterest hosts more than 465 million users who visit the platform each month to get inspiration. It can be to discover products or services for their homes, holidays, etc. Advertisers aim to be discovered during each touchpoint of the planning stage. On Pinterest, advertisers can reach the right consumers and influence their decision by turning them into potential consumers for the brand.
Here’s what they said
Bill Watkins, Chief Revenue Officer at Pinterest said,
We’re excited to continue building on the momentum of our privacy-centric data collaboration and measurement partnerships with LiveRamp. We’re now enabling even more marketers around the world to activate on Pinterest without compromising on control or privacy. Global marketers can build better campaigns with LiveRamp and Pinterest today. They can also build campaigns with the confidence that this partnership is sustainable beyond third-party cookie deprecation and other ecosystem shifts.
Travis Clinger, SVP of Activations & Addressability, LiveRamp said,
In this evolving macroeconomic climate, every dollar marketers spend must be addressable and measurable, and we’re excited to offer marketers across the world the ability to seamlessly leverage RampID for people-based marketing on Pinterest, enabling better campaigns and better measurement. By building on identity that can power better data collaboration in the future, marketers can begin building enduring brand and business value.
Read More: Petal Ads Announces Partnership With MMP WorldWide
Pinterest Adds New Checkout Feature To Drive More Brand Sales
Pinterest forays deeper into eCommerce with new shopping features at its annual advertising summit. The image-sharing site introduced direct in-app checkout and a new personalized recommendations feature.
Read more: Pinterest TV : Another Pinterest Attempt To Monetize Creators’ Efforts
Pinterest Check out- The in-app checkout feature is presently in beta. It provides users the ability to purchase within the Pinterest app. This is available only to some Shopify sellers in the U.S. However, Pinterest plans to provide access to the other U.S based Shopify retailers this year.
Additionally, Pinterest plans to introduce a new application programming interface (API) for shopping. It will make the uploading of product catalogs and listing easier for the retailers.
Your Shop- It is termed as a “personal shopping concierge, powered by a taste-driven algorithm”. The newly announced “Your Shop” feature is a recommendations engine that provides users personalized shopping pages, It suggests products, brands, and creators to users based on their activities and preferences.
Your Shop is also currently in beta, with plans to launch to the U.S pinners later this year with other extra nations.
Pinterest Trends- A Pinterest tool for analysis and insights. It helps businesses to understand real-time search data, more trend types, more granular audience tools, and personalized trend recommendations. The feature is available to businesses in the U.S, the U.K, and Canada, with plans to launch globally.
Earlier this year, Pinterest added the augmented reality feature “Try on For Home Decor”. It allows users to evaluate and check home decor options virtually before buying them.
Read More: Pinterest Rolls Out Suite Of Commerce-Friendly Features For Advertisers
What to know: Eventually, Pinterest users will be able to complete transactions without leaving the app, which can speed up the conversion process and lower friction. With Your Shop feature, Pinterest is competing with Instagram’s shopping tab. Pinterest can become a more compelling shopping destination with these retail-oriented features, giving merchants more ways to reach customers
Pinterest Q3 Earnings Increases, Monthly User Base Declines
Pinterest reported higher Q3 earnings and revenue, but monthly active users fell for the second consecutive quarter.
Why It Matters?
The search-and-discovery platform reported sales increased 43% in line with the estimates due to increased demand from large retail advertisers, shopping, and growth in its international business. Meanwhile, Pinterest’s monthly active users (MAU) fell 2% from the 454 million the company reported in July.
Interesting Read: Pinterest TV: Another Pinterest Attempt To Monetize Creators’ Efforts
By The Numbers
Adjusted earnings per share: 28 cents vs. 23 cents expected by Refinitiv
Revenue: $633 million vs. $630.9 million expected by Refinitiv
Monthly active users: 444 million vs. 460 million expected by StreetAccount
Average revenue per user: $1.41 vs. $1.38 forecast by StreetAccount
Interesting Read: Pinterest Idea Pins Opens New Business Opportunities For Creators!
Pinterest Takeaways
-A high revenue per user generated strong revenue and profit numbers for the company. The average revenue per user for Pinterest has increased 37% since last year.
-However, lower demand in advertising for consumer packaged goods due to supply chain disruptions and pandemic-related issues caused revenue to slip a few percentage points.
-Unlike other social media giants, Pinterest said that Apple Inc.’s changes to ad tracking didn’t have a material impact on its business in the third quarter. This is due primarily to the fact that the service uses a lot of its own data to target ads.
-Pinterest initially benefited from global lockdowns driven by the Covid-19 pandemic as people stayed at home looking for activities around the house, like decorating, gardening and cooking. In the first quarter of 2019, Pinterest’s global user base reached 483 million users — up almost 43% over the last five quarters. However, Pinterest’s monthly active users (MAU) grew just 1 percent to 444 million this quarter. This represents a drop of 10 million users compared to the prior three-month period.
-The smaller user base is the result of the pandemic unwind as people are now venturing out and returning to school or work. This means fewer people are using the app to explore ideas on topics such as home decor or gardening. Chief Financial Officer Todd Morgenfeld said,
“We believe the slowdown was due to the pandemic unwind.”
-Pinterest predicts that user engagement, growth, and retention rates will continue to decline as pandemic restrictions wane.
Interesting Read: Pinterest Rolls Out Suite Of Commerce-Friendly Features For Advertisers
Q4 Outlook
The company provided a Q4 revenue growth estimate that will be in the “high-teens” percentage range on a Y-o-Y basis. This is far short of the analysts’ estimate of 26% sales growth. It will continue to focus on Pinner product, ad product, and measurement investments.
“Our key strategic priorities for 2021 remain anchored in content, Pinner experience, advertiser success, and shopping. We plan to continue investing in these this year.”
Interesting Read: The Ultimate A-Z Glossary Of Digital Advertising!
Pinterest TV : Another Pinterest Attempt To Monetize Creators’ Efforts
Pinterest is expanding its live shopping capabilities as part of its transition from an inspirational shopping site to a hub for creator content. Pinterest TV, a series of live, original, and shoppable films focused on topics including food, home, fashion, beauty, DIY, and more, was introduced recently on the company’s app. The episodes will begin airing on weekdays on November 8 and will be accessible for on-demand watching after that.
Pinterest creators will host the shows, which will include a chat element where viewers can ask questions and generally participate in the experience. According to Pinterest, these programs will be 30 minutes long, will include a 10-30 minute pre-production call with Pinterest’s team as well as an AV tech check.
Interesting Read: Pinterest Rolls Out Suite Of Commerce-Friendly Features For Advertisers
Pinterest has emphasized that the goal is to provide its consumers a new way to be inspired – rather than just browsing images for products and ideas like previously, Pinterest TV will allow the firm to expand into video and the creator economy.
Pinterest claims that creators who have pilot tested Pinterest TV episodes have seen an increase in their following, with some almost tripling their following after a live broadcast. The company is also developing a virtual studio to aid the creative process, where producers will engage with creators to help them build their content and give A/V assistance so they can go live more quickly.
The new episodes will premiere on the Pinterest iOS app on November 8 and will broadcast Monday through Friday at 3 p.m. PDT / 6 p.m. EDT in the United States. Each Friday, items will be added to a live shopping experience where Pinterest users may get discounts from brands like Patagonia, All Birds, Crown Affair, Melody Ehsani, Outdoor Voices, Mented, and more.
Also Read: Pinterest Idea Pins Opens New Business Opportunities For Creators!
Pinterest Rolls Out Suite Of Commerce-Friendly Features For Advertisers
Pinterest launched new commerce-friendly features for advertisers and brands to promote their products. In this latest initiative, the company aims to expand online shopping and advertising on its platform.
Pinterest continues to grow big in social commerce. It added many shopping-focused features such as a new twist to shoppable ads, merchant details, and Idea Ads with paid partnerships to name a few.
What Do These New Features Offer The Shoppers and Advertisers?
Pinterest’s latest step comes as no surprise! The digital pinboard company positions itself as an inspiration tool that eventually leads to online purchases. Here’s more about the new shopping features.
Twist To Shoppable Ads:
Image Credit: Ad Exchanger
Brands can upload their product catalog and Pinterest will automatically pull the items into a slideshow advertisement via Slideshow For Collections. This feature will help advertisers create shoppable videos tailored to individual users based on their interests.
According to the company, Pinterest shoppers have 85% larger baskets than shoppers through other social media platforms. Additionally, they spend twice as much per month. Consequently, buyers can browse more than one product at a time using Slideshare, which encourages them to purchase additional products.
Interesting Read: LinkedIn Rolls Out New Features – All Marketers Assemble!
Merchant Details
Another feature is called ‘Merchant details’ where brands are allowed to feature their brand values on their profile such as “responsibly sourced”, and “inclusive.” They can also showcase the community affiliations like “Black-owned” or “Women-owned”.
Idea Ads with paid partnership
Pinterest is testing the new feature “Idea Ads with the paid partnership”. It is a joint partnership between a creator and a brand. The creator makes an idea pin and tags a brand partner. The brand can then promote the idea as an ad via the paid partnership feature.
(Note: Pinterest is testing this feature in 15 countries with selective creators and is not shoppable yet.)
Verified Merchant Program
The company is expanding its Verified Merchant Program to other countries where users can find their vetted brands. Sellers under this program are allowed to showcase their brand values and community affiliations like ‘eco-friendly”, “disability-owned” and likewise.
That’s What They Said!
In their blog post, the company said,
“People who use Pinterest weekly are 7x more likely to say it’s the most influential platform in their purchase journey, compared to social media platforms. That’s why, as of today, we’re dramatically expanding our suite of shopping solutions for advertisers.”
Related Read: Pinterest Report BlockBuster Q3 Earnings As Brand Advertising Rebounds
Difference Between Buying And Shopping
Pinterest is the latest to join the bandwagon with other platforms like Facebook, Snap, and TikTok to launch new shopping features. The online eCommerce market is booming and lucrative and the tech giants are competing with in-app shopping or virtual clothing try-outs.
What distinguishes Pinterest from other platforms is the focus on discovery and latent intent then facilitating the transaction. 97% of billions of searches on Pinterest are for products not belonging to any specific brand. This gives retailers a chance to reach out to users before they decide what to purchase. Attracting those prospects is the difference between “buying” and “shopping”.
As quoted by Ad Exchanger, Pinterest CRO Jon Kaplan said, buying is purely transactional, whereas shopping is part of an experience. She added, that they are trying to bring the missing joy and inspiration into the shopping experience.
“These are things that are missing from the digital economy right now because so much of eCommerce is focused on purchases and transactions.”
Also Read: The New World Of TikTok Marketing, Everything You Need To Know!
Pinterest Idea Pins Opens New Business Opportunities For Creators!
Pinterest, the popular social media network, is launching Pinterest Idea Pins, a new eCommerce platform for its associate content creators.
Idea Pins are multi-page, immediately shoppable, story-like videos with affiliate links and product tagging that allow any user with a business account to produce saleable, compelling content and better engage with their individual audiences through real-time purchase experiences.
Pinterest said that Pinterest Idea Pins arose from the company’s testing with Story Pins, released into beta in September 2020, following different stages of development that began the year before.
The company explained at the time that Story Pins were different from the Stories you’d find on other social media platforms like Snapchat or Instagram because they focused on what people were doing — such as experimenting with new ideas or products — rather than giving you snapshots of a creator’s personal life.
More individuals are using social media to find consumer items than ever before, and the people they follow and welcome into their online world are becoming an increasingly crucial source of trustworthy recommendations.
The new Idea Pins solution allows Pinterest creators and influencers to easily publish high-quality, lasting content directly to Pinterest, which can subsequently be saved and shopped by users with a single click.
Video recording and editing tools for up to 20 pages of content are available, as well as voice-over functionality to add a human touch, export options to share beyond Pinterest, and topic tagging.
All the aforementioned features are to make sure that published content resonates with the most relevant audience, and a wide array of other creative solutions, including several new interactive features to enhance their online presence.
Pinterest co-founder and Chief Design and Creative Officer Evan Sharp, in a statement about the launch of Idea Pins, said –
On Pinterest, anyone can inspire. From creators to hobbyists to publishers, Pinterest is a place where anyone can publish great ideas and discover inspiring content. We have creators with extraordinary ideas on Pinterest, and with Idea Pins, creators are empowered to share their passions and inspire their audiences
Pinterest Idea Pins will appear at the top of users’ home feeds, and will also appear in search results, the Today Tab, and at the top of creator profiles, in addition to their own full-screen stream view.
Moreover, pinners or creators may earn a commission on the items they sell through their pins, and there are a lot of opportunities for paid collaborations.
Additionally, Pinterest is expanding its Analytics tool to add new followers and profile-visits-driven statistics to show creators how their Pinterest Idea Pins have led to deeper engagement with their account, in order to help them track how well their Pins are performing.
Pinterest Report BlockBuster Q3 Earnings As Brand Advertising Rebounds
Key Points:
- The image-sharing service platform Pinterest witnessed a rebound in brand advertising after a difficult period owing to the pandemic.
- The company’s blowout Q3 results indicate a revival in advertising demand which is a positive sign for the industry.
- The company said that the spending accelerated from advertisers that boycotted social media like Facebook and Twitter.
- Pinterest posted strong revenue and user growth. The company’s Q3 revenue grew 58% year over year to $443 million.
- On Thursday, shares of Pinterest further soared more than 28 percent setting new records.
With the pandemic, consumer behavior saw a shift towards online. Pinterest reported better-than-expected Q3 earnings that trounced revenue and income estimates and the stock price surged more than 28% on Thursday.
Why It Matters:
As eCommerce rises in this pandemic, Pinterest surpasses Wall Street expectations and continues to add users and boost revenues. Helping boost the earnings is a surge in user base and resurgence in brand advertising.
In the investor letter, the company attributed the surge in growth to Covid-19.
“MAU growth was strong in both the US and international markets driven primarily by COVID lockdowns in many regions.”
By The Numbers:
Revenue: $443 million to $383.5 million expected.
Monthly Active Users (MAUs): 442 million to 436.38 million expected
ARPU: $1.03 to. $0.90 expected
Pinterest Takeaways:
- Pinterest saw an unexpected explosion in users- up 26 million from the previous quarter. This has been especially strong in users under 25 years who are looking for DIY ideas for new home -improvement projects during the lockdown. Pinterest explained,
People who began using Pinterest during COVID-19 continued to have high levels of engagement in Q3. In fact, users in the COVID-19 cohort had higher retention and higher engagement (defined as impressions, closeups and saves) than a cohort of new users during the same period last year.”
- International growth drove the majority of global MAU expansion and the social media platform has been an increasingly relevant shopping site.
- The company said that the release of iOs 14 also fueled user growth as approximately 4 million users used Pinterest for background filters and customization ideas.
- Pinterest saw a resurgence in ad demand from large brand advertisers of consumer goods along with mid and small-sized advertisers seeking conversions.
“We’ve seen a major impact just around brands, CPG advertisers and brand advertisers returning to the platform after a pause in Q2 and the return of retail, especially the larger omni-channel retailers that had paused in Q2.”
- The advertiser who joined during the Facebook boycott continues to use the platform as well as accelerate their spending. Pinterest executives also credited the boycott for their gains. Snap earlier echoed similar views in its Q3 earnings result. However, Pinterest also warned that it is unclear on the sustainability of the trend.
- Deployment of automated ads is working for Pinterest supporting small and mid-size businesses. SMB’s are more active as they look for new advertising avenues for international expansion and online shopping. The Pinterest product offering for automated bidding and measurement has significantly improved.
- Pinterest has also upgraded the features- Stories, Video ad units, shoppable pins that drive engagement, and high conversions.
- The company said it has benefitted from shopping on the platform. In the last six months, the number of users engaging with shopping surfaces has grown 85%. However, shopping on Pinterest is still in the early days and growth in its shopping tools is expected.
Pinterest Q4 Outlook:
The company forecasts its Q4 revenue will grow by 60% Y-o-Y but pointed out two areas of uncertainty. First, the pandemic continues to create a level of uncertainty in user behavior especially as the celebration of the holiday season is approaching. It is difficult to predict how will the shopping behavior change or how people will celebrate in the lockdown.
Second, the challenge is to understand brand spending and to what extent the appeal of Pinterest as brand-safe persists with advertisers even past election. Even though the social media platform benefitted from the July phenomenon but cannot bank on Facebook travail over the long term. CEO Scott Morgenfeld said,
“We continued to benefit from marketers who are prioritizing positivity and brand safety.”
“Advertisers tell us that Pinterest is brand-safe relative to other consumer internet platforms and we benefited from this in Q3, though it’s still not clear how sustainable this trend will be, particularly after the U.S. election is over.”
He further added that the top priority of the company is to focus on making the most inspiring and actionable content, engage users, built shopping inventory, and transform advertising.
IAS Partners With Pinterest Over Fraud And Viewability Measurement Reporting
Digital ad verification provider Integral Ad Service( IAS) has partnered with Pinterest to able to deliver marketers access to viewability and fraud measurement reporting that covers its mobile in-app campaign.
IAS mentioned that its reporting includes standard Pinterest ads and video ads for in-app inventory, all updated on a daily basis.
This new integration will help advertisers to have access to viewability and invalid traffic monitoring and reporting across promoted pins and videos as well as Independent, third-party reporting by IAS and a global measurement that allows a holistic view across any brand’s entire Pinterest campaign.
With this announcement, Pinterest is observing an all-time high level of user engagement as well as people are searching for creative solutions to ‘life-at-home’ in this pandemic. The searches on the platform for “work from home” are up 1,411% and searches for “children’s activities” are up 4,055%, globally.
IAS also noted that 82% of users access the platform via mobile devices, and it is even more significant for advertisers to measure mobile campaigns on Pinterest accurately.
With measurement being critical to evaluating and optimizing ad quality and related media spend, Lisa Utzschneider, CEO of IAS said,
“IAS is excited to partner with Pinterest to offer marketers a mobile viewability and fraud measurement solution that works in-app, where people are engaging.”
“This partnership helps provide the transparency that marketers need to optimize their campaigns on the popular network.”
Read more: IAS Issues Threat Alert Regarding The Latest Digital Ad fraud Scheme
Everything the Q2 2020 Financial Results of Tech Giants Have to Say
Big Tech giants have revealed their quarter financial performance in these turbulent times. Here are the Q 2 financial performance, insights, and earnings details:
Alphabet
Google’s parent company Alphabet beat the expectations for its Q 2 earnings despite a dip in the advertising. However, it marked its first year-over-year revenue decline in its history as the pandemic slowed the economic activity and advertisers pulled back their spending. Though there is a slowdown in the advertising growth, Google pointed to newer long-term opportunities in cloud computing and artificial intelligence, YouTube, and shopping. For the rest of the year, in anticipation of slowdown, the company has cut marketing spend by half and also freezes hiring.
Google is also facing antitrust investigations of its search and Android business and is expected to result in a legal action that could cover issues from search to digital advertising space in the coming months.
By the numbers:
Image Credit: CNBC
- $2.6 billion declines in year-on-year advertising revenue.
- Google’s total quarterly revenue $29.9 billion of $38.3 billion is from advertising.
- YouTube ad revenue increased 6% to $3.8 billion.
- Google Cloud sales grew 43% to $3 billion.
- Total Net income reported $6.96 billion compared to $9.95 billion in the year-ago quarter.
Response:
Though there is a slowdown in the advertising growth, Google pointed to newer long-term opportunities in cloud computing and artificial intelligence, YouTube, and shopping.
For the rest of the year, in anticipation of slowdown, the company has cut marketing spend by half and also freezes hiring. Ruth Porat, Chief Financial Officer of Alphabet and Google said,
“We continue to navigate through a difficult global economic environment.”
Consumers are returning to more commercial search queries and advertisers are gradually increasing their search spending towards the end of the quarter. However, Ruth Porat cautioned,
“We believe it is premature to gauge the durability of recent trends, given the obvious uncertainty of the global macro environment.”
Google is also facing antitrust investigations of its search and Android business and is expected to result in a legal action that could cover issues from search to digital advertising space in the coming months.
Amazon
The e-commerce giant delivered some eye-popping numbers during Q2 beating earnings expectations and reported a double-digit revenue year over year. With the flurry of online orders amid the coronavirus pandemic, sales soared by 40%. The online grocery sales tripled Y-o-Y and the grocery delivery capacity by more than 160%. The demand for online shopping sky-rocketed and to fulfill the demand, it hired 175,000 more people in the period.
By The Numbers:
Image Credit: CNBC
- Revenue reported is $88.91 billion vs. $81.56 billion expected, the strongest and unexpected annual growth in years.
- Amazon spent $4 billion on coronavirus related measures as promised in Q1 and expects to spend another $2 billion during Q3 towards COVID-19 mitigation efforts.
- Amazon Web Services (AWS), its cloud computing service grew 29% compared to 33% in Q1.
- Amazon’s Other’ category that primarily consists of the advertising business ( a small slice of Amazon’s total revenues) was up 41% Y-o-Y and subscription services that include revenues from Prime membership also up 29%.
Response:
Amazon CEO Jeff Bezos said in a statement,
“This was another highly unusual quarter, and I couldn’t be more proud of and grateful to our employees around the globe.”
As reported by CNBC, Amazon CFO Brian Olsavsky said consumer demand in the pandemic shifted from consumables and groceries to categories “not so profitable” and normal mix of products. He said,“Amazon could ship a lot more.”
Amazon will conduct a Prime Day shopping event in the fourth quarter.
Despite the Congress probe, pandemic, and an anti-hate boycott from advertisers, Facebook beats all market expectations, revenue grew by 11%. This speaks volumes about the strength of the company’s appeal to marketers despite serious challenges. The top 100 advertisers’ that boycotted Facebook over its hate speech and misinformation policies constituted less than 20% of Facebook’s ad revenue. However, the boycott by large advertisers couldn’t rally small businesses who are reliant on Facebook.
By The Numbers:
Image Credit: CNBC
- 3.14 billion monthly users across all apps(Facebook, Messenger, Instagram, and Whatsapp), compared to 2.99 billion in the previous quarter.
- 1.79 billion Daily Active Users on Facebook, up 12% year on year
- 2.7 billion Monthly Active Users on Facebook, up 12% year on year.
- Revenue: $18.7 billion, up 11% year on year.
- It has more than 9 million active advertisers.
Response:
The company said in a statement,
“We are seeing signs of normalization in user growth and engagement as shelter-in-place measures have eased around the world, particularly in developed markets where Facebook’s penetration is higher.”
Mark Zuckerberg said on a call with investors,
“Some also seem to wrongly assume that our business is dependent on a few large advertisers. The biggest part of our business is serving small businesses.”
Two new initiatives were announced for small businesses- Facebook Shops and in-messenger commerce.
“This really is primarily focused on small businesses, individual entrepreneurs. Small businesses are the biggest part of our business, not large businesses.”
The company forecasts its revenue growth rate for Q3 of about 10%. while taking into account ongoing headwinds including macroeconomic uncertainty, ad boycott (formally began in July, after Q2 ended), regulations around ad targetting, and measurement.
Pinterest revenue grew 4% on user growth and advertisement. Users who started using Pinterest during Covid-19 continued to have engagement even after lockdown restrictions eased out at a few places. It reached a milestone of crossing more than 400 million monthly users, witnessing a strong growth from users under 25 who grew twice as fast as users over 25. The total advertising growth accelerated year over year in Q2 and small and medium-sized advertisers emerged as a key driver that made up nearly half of its revenue. New features like Shop Tab and the ability to shop from boards are worked upon to make content search easy for the Pinners.
ByThe Numbers:
Image Credit: CNBC
- Total daily video views (organic+ paid) grew over 150% year over year.
- Catalog from business increased in Q2 by more than 350% from Q1.
- Revenue from conversion optimization or oCPM, shopping ads, and auto bids continues to grow faster than overall revenue, and attributed conversions grew 2.7x year over year. 80% of CPC revenue is going through the auto bid.
- Users visiting shopping only surfaces grew more than 50% in the first half of 2020 and product only searches grew 8x.
Response:
As per CNBC, the company said,
“People needed Pinterest in Q2. They needed a service that helped them adjust to radically changed circumstances — one that inspired them to cook at home, build vegetable gardens, plan activities for their kids and set up remote offices and home gyms, to name just a few typical COVID-19-related use cases we saw during the quarter.”
Advertisers have increased budgets on Pinterest because of its strong commercial intent where advertisers get their traction without displaying ads with any controversial content.
Omnicom Group
Omnicom revenues decline 23% due to a decline in spending by the clients. In order to offset the decline in revenue 6,100 jobs were cut across its network, froze hiring, eliminated salary increases, implemented voluntary pay cuts across its agencies, and participated in government subsidy programs in 35 markets. It also shed 1 million square feet of real estate space as it terminated leases across markets in order to mitigate the impact of the pandemic. It is expected that these actions will result in the repositioning costs for the quarter of $278 million that will generate approximately $500 million in annualized savings.
Advertising revenue decline as the revenue of the programmatic business decreased where it offered principle-based buying options for clients.
By The Numbers:
- Reported revenue was $2.8 billion, down $854 million organically, or 23% from Q2 2019.
- Advertising business declined 26.6% and Third-party service costs which fluctuate directly with changes in revenue declined by approximately $400 million.
- Revenues declined in all disciplines except healthcare which grew 3.2% organically.
- CRM execution and support include events and field marketing businesses, which declined 27.6%.
- CRM consumer experience declined 25.6%, and PR declined 14%,
Response:
CEO John Wren said on the earnings call,
“The quarter posed extraordinary challenges. he effect of COVID and related lockdowns were unprecedented.”
The main reason for declines in Omnicon’s services was because the client from travel, retail, auto, and other affected verticals paused or cut spending whereas technology and telecom fared better.
After a tough and bad Q2, the company looks forward to the second half. The recovery may not be immediate but the impact will vary regionally and by vertical. Wren said,
“We think the worst is behind us, with Q2 being the worst point for year-over-year revenue declines.”
The company added a few new clients like Air France’s global agency of record account and Clorox’s media business in the United States.
Apple
Apple reports a slow down in revenue growth as the demand and supply was impacted due to the pandemic. However, it had reported a better quarter than Wall Street expected, showing growth across all product lines including iPhones and reflected growth across all geographic segments.
By The Numbers:
Image Credit: CNBC
- Revenues rose 11% to $59.7 billion against the estimated revenue of $52.6 billion.
- Apple reported iPhone revenue of $26.42 bn, a growth of 1.66%.
- The biggest growth was in iPad revenue at $6.58bn up from $4.48 bn.
- Apple reported service revenue of $13.1 bn against $11.5 bn the same period in the last year.
Response:
Apple CEO Tim Cook during a call said,
“Amid the most challenging global environment in which we’ve ever operated our business we’re proud to say that Apple grew during the quarter.”
The company’s subscription service and Apple Tv+ also performed well as most people watched content under lockdown. Apple did not issue guidance for the third quarter.
Read more on Q1 results: Where Do These Global Companies Stand At The End Of Q1: Performance, Insights, And Statistics
