Pinterest’s Facebook App Is Losing Users – What Happened?

Named the third most popular network in America in March 2012, the social bookmarking site Pinterest was one of Facebook’s early success stories with its Open Graph tool for third-party developers. But Pinterest’s Facebook app hit a sharp decline in average users during the month of April.

According to AppData, a site that provides Facebook and iOS application statistics (and a sibling of Social Times), monthly average usage (MAU) of Pinterest through Facebook has leveled off at 8.3 million users today compared to 12.1 million on March 23, not including users who joined the site through email referrals.

The number of daily average users (DAU) had peaked at 1.3 million on April 18, which is also the day that Pinterest released an improved version of its iOS app. But the numbers dropped dramatically on April 20 after Pinterest tightened the reigns on spammers who had been signing up for multiple fake accounts. Even legitimate users reported having trouble with their accounts after the changes took effect.  Late in March, Pinterest had updated its terms of service to address copyright concerns.

Today however, the number of daily average users appears to be back on the rise, jumping back from its low point of 930,000 on Friday to 1.1 million.

BusinessInsider predicts that “Pinterest will continue shedding try-out-the-latest-hot-thing types and then start growing again, the way it used to: through word-of-mouth.” Do you think Pinterest is losing steam or just experiencing technical difficulties? Let us know in the comments.