Pinterest’s pushpin into the stock market corkboard

http://tech.fortune.cnn.com/2013/11/14/pinterest-plots-its-monetization-strategy/

After Facebook and Twitter released their respective IPOs, Pinterest is looking for ways to seem more attractive so that it too can go public. However, Pinterest faces an issue not unknown to Facebook or Twitter: generating revenue.

Digital scrapbooking site Pinterest is a blog-based platform where users ‘pin’ images, quotes, or videos they find interesting to their profile. At this time, Pinterest is experimenting with “promoted pins”- images that display a company’s ad, or any other marketing they wish to show the consumer. This strategy is not unlike the ones adopted by Facebook and Twitter- the service remains ‘free’ for the customer, but users are subject to ads and promotions.

In order to differentiate itself from the competition, Pinterest also plans to leverage the fact that no vital personal information is publicly shared on the website. Because users do not need to be associated with a Pinterest account in the same way Facebook or Twitter users are, the Company is free to share or sell data without litigation.

By keeping track of which “pins” are the most popular, companies purchasing data from Pinterest have the potential to assess which trends, ideas, or products are trending and analyze the data to make informed marketing decisions.

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