Pinterest bets measurement and SMBs will boost performance revenue

Both are tasked with shoring up Pinterest’s efforts to be a permanent part of more media plans amid ensuing cutbacks in ad spending and mounting pressure from larger, deep-pocketed rivals. To do that, Gupta said the team is planning to work more closely with Pinterest advertisers’ existing measurement tools to make performance of its ads easier to verify and, in turn, encourage brands to increase spend if the results hold up. That push is also key for Pinterest to expand beyond large advertisers and win more ad dollars from SMBs and mid-market advertisers, where ease of use and clear performance signals are critical. 

“At this stage, we really need to demonstrate trust and clarity in ad performance, which means leaning in heavily on measurement and attribution,” Gupta said. “So making sure that when advertisers plan their next ad campaign, they know this is a place they’re going to get access to a great audience and incremental sales.”

Currently, just 15% of Pinterest’s revenue comes from SMBs, according to the company’s latest earnings call, highlighting the size of the opportunity if measurement and accessibility efforts pay off. Which is why the platform is hoping that tools like its recently launched “Promote a Pin”, which lets advertisers and creators turn organic content into paid ads, will make it easier for more advertisers to participate in the platform’s performance ecosystem.

Historically, advertisers have treated Pinterest more as a branding play than a platform that delivers direct performance. But according to Gupta, the way Pinterest will successfully grow share of advertiser budgets is by being “relentlessly measurable and repeatable”.

Put another way: Pinterest’s challenge going forward is proving it can deliver consistent performance at scale – a test that will determine whether the platform can convert inspiration into measurable revenue growth.

“We’re going to show the value of being the best at discovery inspiration, and then with our performance products, we’re going to continue to pull people through the buying journey and show we can perform like a performance platform,” he said.

As it stands, the ad business has been going through a slower-growth period. During the company’s Q4 2025 earnings call, CEO Bill Ready said he was “not satisfied” with its growth over the quarter, having reported $1.3 billion in revenue for Q4 — a 14% increase year over year, which he put down to advertisers pulling back ad spend after being hit by tariffs. Ready added that the company is “moving with urgency” to return to mid-to-high teens growth or better.

“Pinterest’s initiative leverages the significant desire today for better measurement and the accompanying advantages in performance budget allocation,” said Paul Erickson, principal analyst, media and entertainment at Omdia. “This may also strengthen their appeal to SMBs, which are increasingly measurement-driven but possess limited technical resources and budget.”