Hey there, internet folks! Let’s chat about Reddit and their plans to make more money. You know, the site we love for all those interesting threads and communities? Well, they’re thinking about showing more ads and maybe even putting some cool stuff behind a paywall.
So, Reddit recently shared how they did money-wise in the second quarter of 2024. They lost a bit of money, but hey, that’s less than they lost the year before. Now, Reddit has never made a profit, and they’re talking about ways they can start making some green.
The big idea? Selling more ads. They’re okay with fewer third-party apps because they want you to use Reddit’s own site and app, where they can show you ads. In the second quarter, ads brought in 90% of Reddit’s total money, which is a 41% increase from last year.
But here’s the thing, Reddit’s COO, Jen Wong, says they want to make sure advertisers are happy and get what they want. They’re thinking about showing ads in places where they don’t show them now. Imagine you’re on Reddit, and you notice there aren’t ads everywhere. That’s on purpose. They’re looking at spots where you spend more time and thinking about putting ads there.
Wong also mentioned that compared to other platforms, Reddit’s ads are “light,” which means there’s room for more without making you feel like you’re in an ad sandwich.
Now, you might start seeing ads in the comments section. They’re testing this out, and it’s just an experiment for now. But it could be a way for Reddit to stand out to advertisers.
And what about search? Well, Reddit’s CEO, Steve Huffman, says there’s a lot of potential for ads there too. But first, they want to make their search better. This year, they’re testing new search pages that use AI to help you find what you’re looking for more easily.
This comes as Reddit is being picky about which search engines can show their content. They’re working with some big and small search engines to make deals. Reddit’s thinking about charging for content scraping and wants to make the most of people using Reddit to find stuff.
Now, what about paywalls? During a talk about money, someone asked Huffman about making money for people and creators on Reddit. They’ve already got a program where popular posts can earn users some cash. Huffman thinks adding new ways to use Reddit will make the platform bigger and better without hurting what’s already there.
He hinted that paywalls might come to new subreddits, but not the ones we know and love. It’s still unclear if or how Reddit might charge you in the future.
A Reddit spokesperson told Ars Technica that they’ve had premium community features before that users loved, and they’re looking at new ways to give moderators and communities the chance to create exclusive spaces and content.
All this comes as many online platforms are looking for ways to make money beyond ads, which can be a bit unpredictable. Reddit’s also been working on making the free parts of their site better, like updates to their famous “Ask Me Anything” sessions.
Even though some longtime users are upset about recent changes, like blocking search engines and changing how ads work, Reddit’s user numbers are still growing. In the second quarter, they had 51% more daily active users compared to last year, reaching 91.2 million.
So, that’s the scoop on Reddit’s money-making plans. They’re looking to show more ads in new places and might be thinking about paywalls for some content. It’ll be interesting to see how this all plays out and what it means for us, the users. Stay tuned!