UPDATE: Pinterest IPO’d on April 18th, 2019.
Pinterest is going to have a huge year in 2015. Just recently, reports have stated that promoted pins are going to open to many more businesses and organizations. One article I read explained that one out of every two pins is going to be a promoted pin. If Pinterest can do this effectively it is going to be a money printing machine. In fact, I feel as if Pinterest has the most value of any social network because users are willing to buy products they pin. Pinterest is a place you can go Christmas shopping, birthday shopping, recipe hunting and to seek out fashion advice. Do you get the common theme? Spending money!
There is no doubt in my mind that Pinterest will IPO sometime in the very near future. Unless the company alienates all of their users and floods them with unwanted advertisements I feel as if Pinterest is going to be worth more than Twitter and Facebook because of the intent to buy when using the social network. Remember that both Twitter and Facebook struggled to make money even when they were going through the Initial Public Offering (IPO) process. Heck, Amazon.com was public for several years before they made money. Here is why Pinterest will make plenty of money.
Pinterest Users Shop
Pinterest is an online shopping mall and grocery store all packed into one. Over the Christmas holiday my lady friend and I wanted to cook some meals. You know where she went first? Not the grocery store. She didn’t call mom or grandma. She picked up her Android tablet and looked at Pinterest. After scrolling through half a dozen recipe ideas we went to Harris Teeter (my local grocery store) and spent about $140. Let me repeat that, Pinterest was the reason we spent $140 for food.
This is not the first time we have done this; we do it all the time. I would say that nine out of 10 meals we cook are directly from Pinterest. Why wouldn’t a grocery store or food company want to spend money to promote a pin on Pinterest? They will immediate get a return on their investment unlike Facebook and Twitter where they are just throwing spaghetti against the wall and hoping it sticks.
If the recipe and grocery shopping story is not enough to convince you that Pinterest is a cash cow here is another story. Another female friend of mine has a wedding coming up. She was told to wear a grey dress. While she is very fashionable and shops at some of the finest boutiques in the area she needed some unique ideas for 2015. Guess where she went? You got it, Pinterest.
Not only did she go to Pinterest to pick out her dress but she also went to Pinterest to look for accessories such as rings, watches, bracelets and necklaces. To top it off, she used Pinterest to find the perfect hairstyle for the wedding that will be coming up in a few months. All in all, she will spend over $1000 on clothes, accessories and a new hairstyle for this wedding. She is just one female attending the wedding. Imagine how much time the bride is spending on Pinterest.
Pinterest is a Fantasy Land
The icing on the cake is the fact that Pinterest is a fantasy land. It is like a Disney princess movie for middle school, high school and college girls. Young women all over the United States are creating Pinterest boards for their dream wedding, dream house and dream man’s wardrobe. While they currently do not have the money to buy the Christian Louboutin dress shoes for their boyfriend or herself, you can guarantee this is in their mind for when they get their first major job.
By scouring Pinterest it is quite obvious what the users are doing. They are shopping and creating “dream lists”. Other than Google, I do not feel as if there is a better way to make money online. Pinterest has created a shopping mall from your smartphone, laptop or desktop computer. For this reason, I feel as if Pinterest will IPO or go public in the near future, likely 2015, which will allow them access to even more money to expand the options that are already available to businesses.