Pinterest is expected to generate ad revenues of $553.3 million in 2018 in the US, according to the latest forecast for eMarketer. The prediction would mark a 43.8% increase from 2017 ($384.7 million).
The forecast further predicts that by 2020, Pinterest will hit the $1 billion mark.
“Marketers are seeing Pinterest’s potential for reaching consumers as they’re considering products. Placing ads is one way they’re inserting their brands into that interaction,” explained Monica Peart, senior forecasting director at eMarketer.
Pinterest is also becoming of growing interest for video ad publishers following the launch of a dedicated video ad product.
Average ad revenue per user is expected to average $7.15 this year, marking a 34.4% increase from 2017. Although that’s a marked improvement it still pales in comparison to Facebook which generates an average $134.89 per user in 2018.
Pinterest’s ad revenue per user mirrors that of Snapchat a little more, which is predicted to generate $7.81 per user in 2018.
“Pinterest has a significant and engaged user base that it is starting to monetize,” Peart said. “As it leverages its rich user data and develops its ad offerings and measurements, it has the potential to increase monetization levels to the likes of Instagram or Snapchat.”
Meanwhile, eMarketer forecasts that in 2018 there will be 77.4 million US Pinterest users and 83.6 million by 2020.