The terms of the deal have not been disclosed, but Pinterest will be closing down the app. Most of the team will be joining Pinterest, including CEO Paul Davison.
Both Pinterest and the team behind Highlight have their roots in discovery (one of things, the other of people) and the team should be able to help Pinterest’s burgeoning ad business.
Pinterest has said that it has been focusing on monetizing its users in advance of its IPO. It is apparently taking a leaf from Google’s book, building the infrastructure to allow advertisers to buy search at scale.
The company has updated its advertising policy and is expanding into keyword search — a user can search for ‘couches’ and be served ads for couches, etc. — and audience-based buying offerings.
“People may ultimately convert on Google or other places, but we hope we can be a place where the initial discovery of ideas can happen,” said Jon Kaplan, Pinterest’s head of global sales, in a recent interview with eMarketer.
With 2 billion monthly searches on their platform, Pinterest has the potential to be an advertising powerhouse. According to Pinterest, about 75% of the content repinned on its platform originally comes from brands.