Last month, the social media platform that acts like a digital vision board posted disappointing Q4 results and issued a weak outlook for Q1, and Pinterest CEO Bill Ready blamed tariffs for the company's weak performance. "We are not satisfied with our Q4 revenue performance and believe it does not reflect what Pinterest can deliver over time," he told investors on an earnings call. Ready added that the Pinterest advertiser base, which leans heavily on large retailers, slashed ad spending in response to tariff pressures. In Q4, Pinterest CFO Julia Donnelly reported that Pinterest's largest retail advertisers "created a more meaningful headwind than we expected as they sought to protect their margins in this dynamic environment and pulled back on ad spend." The social media platform expects growth in Q1 to further slow down. Pinterest has become one of Gen Z's favorite planning tools and visual search engines. But despite Gen Z making up more than half of Pinterest's user base, and Pinterest making improvements to its ad tools, advertisers aren't prioritizing the platform—choosing to funnel budgets toward Meta and Google instead. According to ad experts, Pinterest, which in January cut about 15% of its workforce, hasn't moved with the pace of AI innovation. "When it comes to Pinterest, it's been tough, because [while] they entered the AI space almost two years ago with some of the launches they announced, but they were still very late to the game," Katya Constantine, CEO of agency Digishopgirl Media, told Retail Brew. "It takes time for those products to mature, and because the space changed so fast, their tools—when it comes to this AI infrastructure world—are just not quite there yet." Continue reading on Retail Brew.—VC |
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