Valuation of $5 billion Pinterest and its images “social business”

photo sharing and social networking site Pinterest has just completed a new round of $200 million in financing. The investors to the not profitable company, gives a valuation of $5 billion. Has long been facing “good service but can’t find the profit model” Pinterest, now officially started his journey of transformation.

Pinterest is a photo sharing social networking sites, the first waterfall flow display mode, the unique concept of “Pin diagram”, won the user’s favorite. Previously, a survey showed that Pinterest user activity after wipe over Twitter. So far, the company received $764 million in financing.

unfortunately, this is four years of company, has not found (at least not formally launched) reasonable profit model. It also makes Pinterest the $5 billion valuation drew.

however, recently, Pinterest has found a development direction.

Pinterest started from image to image search, social transformation. Pinterest has launched in a release “Guided Search” (Guided Search). This function is intended to provide users with more intelligent image findings and search tools. With Pinterest’s own words, is to use its own hold massive amounts of images and the corresponding social information users, for users to recommend pictures, etc. “Pinterest in the future will become a tool to help users find the things they don’t even know where.”

of course, as a business, the ultimate goal of Pinterest transformation is to expand the scale of users and reap the benefits. Pinterest to find and search space transformation, will provide the opportunity to better realise. So far, the chance of Pinterest exist the following two points:

the first, create a “picture version of Google,” in the process of users find pictures, interspersed with image ads, charge for brand advertisers. Pinterest has been trying to this model, this is not official. After Pinterest highlighted the native waterfalls flow advertisement Promoted Pins. With the cooperation of image search, it will allow for better display advertising business.

second, build a guide electric business platform or pictures. Pinterest as a picture sharing website, guide and photo electricity or proximity with natural. Between users “one-to-many” pictures show, let the electronic commerce. Pinterest is a flow aggregation platform, also can become a traffic distribution platform. Actually, such attempts had someone on Pinterest, and gain good profits.

Internet technology industry evolution never been excessive, it believed in the “revolutionary change”. If you can’t do product innovation experience and achieve a balance between profit model, will eventually die. We sincerely hope that the transformation of Pinterest can successfully, and can bring some enlightenment for the domestic entrepreneurs.