Nearly one and a half years ago, Facebook lost its key person, the man behind Facebook’s monetization strategies, Tim Kendall, who seamlessly helped Facebook to monetize the site particularly in the development of the ads business. Today, the same person has been hired by the slowly growing and puzzled on how to raise profits – pin board styled social photo sharing site – Pinterest, in order to help the company convert their engaged users into real money.
Kendall worked at Facebook from the year 2006 to December, 2010 where he was designated as the Director of Monetization. Kendall mainly architected Facebook’s early monetization strategies, which certainly shot up the company’s revenue in no time. In the year 2011, Facebook’s advertising revenue was about $3.2 billion, which was 85 percent of its total revenue!
When Kendall was leaving Facebook, David Fischer, VP – Advertising and Global Operations at Facebook, sent out an email highlighting Kendall’s contributions to the company –
Over more than four years at Facebook, Tim has had an incredible impact on the company, and in particular on the development of the ads business. Starting back in 2006, Tim wrote the blueprint for our monetization strategy. In all seriousness, it is safe to say we would not be where we are today without Tim.
Tim recognized early on not only that advertising could be social, but that it should be social on Facebook. What began as “sponsored stories,” social advertising has transformed the marketing business. And again, Facebook has Tim to thank.
Tim is truly a renaissance man. All of us who have worked with him have seen his strong intellect, quiet intensity, and complete focus on the mission at hand, with little tolerance for distractions or bureaucracy. He balances that with a more lively side that seems to come out after dark and has been displayed over the years at fine Palo Alto establishments like Rudy’s and the Old Pro. We will greatly miss all sides of Tim.
Since leaving Facebook, Kendall has done some venture capital, investing in Turntable.fm and SneakPeeq, a social shopping site.
Now that the man behind Facebook’s revenue has been hired by Pinterest. This eventually leads to a question in mind whether Pinterest is planning to slot in advertisements on the site. If not, Kendall has to think another way out to generate revenue for Pinterest.
Currently, Pinterest has no steady income. The site currently exists because of the outside investments from entrepreneurs and venture capitalists. Although Pinterest has tried out several different approaches to make money such as affiliate links, they haven’t really been successful enough. Pinterest team has stated on their site that they will try out advertisements, and perhaps this is why Kendall has been hired.