On the road to monetisation

Just like Facebook and Twitter that both started out as commercial-free social venues for self-expression, Pinterest is now on the road to monetisation. The popular social-sharing website recently raised $367 million in venture funding from 15 investors, according to a document filed with the Securities and Exchange Commission. The new round of funding has set the company’s valuation to $11 billion, making it one of the most valuable startups in the world and also a potential candidate for an IPO this year. According to sources, the bookmarking site will use the money to fuel international growth and bankroll its ecommerce initiatives including its ad platform, the Promoted Pins. Wedbush Securities estimates that the ads could generate $500 million in revenue in 2016. The biggest challenge now for Pinterest is to ensure that Promoted Pins remain fresh and interesting and don’t turn off users. After all, commercialisation is a double edged sword. If done right, it can do wonders for the company’s revenue, but if it’s overdone, it can kill the basic concept of the company and repel loyal users.
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