Exploring Pinterest’s Business Model in 2025: How It Powers Inspiration & E-Commerce with a Visual Discovery Engine

About Pinterest

Founded in 2010 by Ben Silbermann, Evan Sharp, and Paul Sciarra, Pinterest is a visual discovery platform that allows users to share and explore images, or "pins," on virtual boards. Initially launched as a personal inspiration tool, it has evolved into a leading advertising platform and e-commerce powerhouse.

As of 2024, Pinterest has around 450 million monthly active users worldwide, and the platform continues to grow, particularly in e-commerce. Pinterest generates revenue from its advertising model, which allows businesses to promote their products through sponsored pins that reach highly-targeted audiences. It also integrates shopping features that enable users to purchase directly from the platform.

In 2024, Pinterest reported $2.9 billion in revenue, primarily driven by advertising and e-commerce activities. With a strong focus on visual inspiration and targeted marketing, Pinterest connects businesses with consumers, enabling them to discover new products and ideas through a personalised, visually appealing experience.

How does Pinterest make money?

1. Revenue Stream Breakdown

• Advertising Revenue: Sponsored Pins account for approximately 80% of Pinterest's total revenue. These ads allow businesses to promote products to highly-targeted audiences, using the platform’s vast database of user interests and search behaviour
• E-commerce Revenue: Shopable Pins and affiliate sales contribute about 15%. Pinterest is increasingly integrating shopping features, making it a social commerce platform
• Other Revenue: Subscription services (Pinterest Business Accounts) and data analytics services represent the remaining 5% of revenue

2. Revenue Contribution

• Sponsored Pins form the core of Pinterest’s revenue, with ad solutions driving both user engagement and business sales
• E-commerce features are growing quickly, as users move from idea discovery to direct purchasing
• Pinterest is also focusing on advanced targeting tools for businesses, contributing to growing ad revenue

3. Pricing Strategy

Pinterest uses cost-per-click (CPC) and cost-per-impression (CPM) for its ad pricing. Advertisers pay based on user interactions with their promoted content, making it a performance-based advertising platform. E-commerce integrations work through a commission-based model, where Pinterest earns a cut of each sale generated through its shopping pins.

Read the business model of Uber that illustrates how two‑sided marketplaces operate by connecting users and providers, similar to how Pinterest connects content creators and consumers.

Pinterest Business Model Canvas

Pinterest Value Proposition

Pinterest offers users a visual discovery engine that inspires people by helping them discover, share, and save ideas. Whether it’s a new recipe, travel destination, or fashion trend, Pinterest provides a unique way to explore ideas visually. The personalisation algorithms tailor this experience, making every user’s feed distinct.

For businesses, Pinterest offers targeted advertising with Sponsored Pins that reach engaged and relevant users. It uses rich user data to match brands with their most interested customers, increasing the likelihood of engagement and sales. With growing shopping integrations, Pinterest allows users to purchase products directly from pins, creating a seamless shopping experience that blends inspiration with action.

In emotional terms, Pinterest’s users feel inspired and empowered to explore and purchase based on their interests. Businesses benefit by connecting directly with consumers through a trusted platform that drives engagement, purchases, and brand visibility. Pinterest's visual-first approach and ad solutions create value on both ends, driving its rapid growth.

Pinterest Cost Structure

Pinterest’s major expenses include content moderation, algorithm and technology development, and advertising infrastructure to support its business model. The platform invests heavily in personalisation technologies, user engagement strategies, and partnerships with e-commerce platforms.

Employee salaries, marketing, and data analytics are additional costs. The company also allocates funds for platform security, regulatory compliance, and scaling its e-commerce features.

Pinterest Customer Segment

Pinterest serves a diverse range of B2C consumers who are looking for inspiration across various categories like lifestyle, fashion, food, and travel. It also targets B2B brands and retailers, offering them a platform to advertise products to highly engaged users. Additionally, affiliates and influencers benefit from Pinterest’s ability to drive traffic and purchases. Its core users are typically between 25 and 44 years old, with a significant skew toward women.

Distribution Channels

Pinterest delivers its services through its website, mobile app, and integrations with third-party platforms. The platform relies on organic content discovery and paid advertising (Sponsored Pins) for user engagement. Pinterest’s e-commerce features allow users to purchase products directly from the platform, creating a seamless shopping experience. Influencers and brands also promote products via affiliate links, extending Pinterest’s reach and product sales potential.

Key Partnerships

Pinterest partners with brands, retailers, influencers, and affiliate marketers to create a comprehensive ecosystem. It collaborates with e-commerce platforms for Shopable Pins and affiliate programs, and with advertisers to deliver targeted campaigns. Pinterest also works closely with social media influencers, enabling them to create content that engages their audiences and drives affiliate sales. These partnerships support Pinterest’s goal of becoming a leading social commerce platform.

SWOT Analysis of Pinterest

The business model of IKEA demonstrates scalable direct‑to‑consumer commerce and ecosystem value, relevant when Pinterest explores e‑commerce integration.

Competitor Comparison

What’s New With Pinterest?

Pinterest recently launched new AI tools like Performance+ to optimise ad performance. It expanded shoppable features, personalised content algorithms, and international ad reach. Collaborations with creators and affiliate programs have also increased, improving monetisation and platform engagement.

Key Takeaways for Students / Marketers 

• Pinterest scales effectively due to its AI-led ad platform and visual-first design
• Small businesses can emulate success through cost-effective self-serve ad formats
• Visual discovery platforms are an emerging marketing powerhouse
• Prioritising mobile and personalised experiences drives higher engagement
• Leveraging creator and user-generated content builds authentic brand reach