Facebook Inc (FB), Google Inc (GOOG): Which Tech Giant Should Pin Down Pinterest?

Page 1 of 2

If there’s one company that will either go public or get taken over in 2013, its pinboard-style social media site Pinterest. In the three short years since it was founded, Pinterest has become the sixth most visited social media site in the United States with 272 million unique visitors in 2012. According to Reuters and comScore, the site has 48.7 million active users. Its endlessly scrolling pinboard style – which allows users to pin any image from the web to add to their personal collections of food, books, movies, apparel, travel destinations, and more – has proven to be an incredibly popular format, with sites like eBay also cloning its design aesthetics.

Facebook Inc (NASDAQ:FB)

A recent round of funding now gives the company an estimated market value of $2.5 billion. That means that the little startup is quickly rising in value, and I believe that three companies in particular - Amazon.com, Inc. (NASDAQ:AMZN)Facebook Inc (NASDAQ:FB) and Google Inc (NASDAQ:GOOG) – would benefit the most from adding Pinterest to their portfolios.

Pinning Pinterest’s Popularity

According to Nielsen’s 2012 Social Media report, Pinterest is the fastest growing social media network in the United States, growing its visitor base 1,047% year-on-year. At this rate, it will soon pass LinkedIn Corp (NYSE:LNKD) and WordPress and close in on the ‘big three’ of social media – Facebook Inc (NASDAQ:FB), Blogger and Twitter. What’s more, Facebook and Blogger’s unique visitors are declining.

Source:
http://marketingland.com

Pinterest also posted the highest mobile growth of its social peers, with mobile app usage rising 1,698% and visits to its mobile website surging 4,225% year-on-year. By comparison, the second fastest growing mobile app was Twitter, with 134% growth, and the second fastest growing mobile website was Reddit, which grew 153%.

The majority of Pinterest’s user base is female, in two primary age segments: 25-34 year olds, who access the site from mobile device more often, and 35-49 year olds, who use its desktop website more frequently. Females account for 70% of Pinterest’s desktop users, 72% of its mobile site users and 84% of its mobile app users.

Pinterest ranked fourth as the mobile app with the longest per-visit engagement rate. Users spent an average of 14.1 minutes on the site per visit in 2012.

Pinterest’s whopping growth figures certainly look impressive, but what could tech giants Amazon, Facebook Inc (NASDAQ:FB) or Google gain from acquiring Pinterest?

Amazon

As much as I love Amazon, its main website is looking increasingly cluttered and dated. Ever since eBay Inc (NASDAQ:EBAY) adopted the Pinterest-style scrolling pinboard, I’ve wondered why Amazon hasn’t done the same for its main page.

Pinterest users often pin ‘wish lists’ of things they wish they could buy – a perfect fit (and more attractive alternative) to Amazon’s own Wish Lists. Combining Pinterest with Amazon Wish Lists could yield some interesting results, such as personalized gift lists for friends.

Yet Amazon would benefit even more if it kept Pinterest as an independent site, and linked pinned items back to Amazon.com. To encourage this, Amazon could convert Pinterest users into affiliates, paying them to drive traffic to its site with their collections. If executed properly, Amazon could create a self-sustaining ecosystem of users profiting from advertising their wish lists to other users, while driving traffic and sales to Amazon. This would be a win-win situation for both Pinterest users and Amazon investors.

Amazon would inevitably collect stats from Pinterest users to gain some valuable data on consumer behavior, which could cut research and development expenses considerably when crafting new marketing initiatives. Lastly, Pinterest’s site is already located on Amazon’s servers, which would make the migration and integration of its users fairly painless.

Facebook

Pinterest would be a beautiful fit for Facebook Inc (NASDAQ:FB) as well. Just as Facebook tapped into the need for humans to constantly share and be acknowledged, Pinterest channels the need to collect, hoard and share – a perfect horizontal acquisition.

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!