Categories: Business

Reddit’s advertising revenues become the fastest among social media platforms

  • Reddit’s advertising revenues increase more quickly than any other social media platform, according to Emarketer.
  • A new report indicates that the Reddit user base is developing due to its unique “social” sensation.
  • However, advertisers are faced with challenges on Reddit due to the unique communities of the site.

A new report shows that Reddit’s advertising revenues increase more quickly than any other social media platform. However, advertising on the application is not as simple as it seems.

The Emarketer report indicates that advertising revenues from one year to the other from Reddit will increase by more than 30% this year, according to its estimates. Emarketer is a digital marketing research company belonging to the parent company of Business Insider, Axel Springer.

The highest advertising revenue growth among the following Reddit social media platforms came from Tiktok with 25% and Instagram with growth of 15% throughout the year, according to the report.

Reddit CEO Steve Huffman said Reddit is one of the few Internet places that allows people to hold community conversations with each other. Huffman said during a Wall Street Journal event in October that Reddit publications were precious for search engines and AI because they contain a richness of “familiar words on just about all subjects” which are constantly updated.

Emarketer analysts said in the report that the Reddit user base increases, in part because it is one of the few social media platforms that always feel “social”.

“This is a great reason why it is one of the only social platforms to see time spent in 2025, according to our forecasts,” said the report.

However, although Reddit’s social sensation attracts new users, it could make it difficult for advertisers to recover as relatable on the site. The report notes that Reddit users “generally do not want brands in their conversations, in particular those who are not frank on whom they are”.

Some advertisers have found ways to integrate into Reddit communities, including by creating employee accounts. User Kiethfromsonos, an employee of Sonos who asked to join the Reddit R / Sonos community, gradually obtained a place in the community, the report said.

Reddit also gives advertisers tools to facilitate organic presence on the website, the report indicates. In March of last year, the company created Reddit Pro, a platform that gives advertisers advertisers, ideas and publication tools, and earlier this year, Reddit announced a new format that allows advertisers to promote the AMAs to come.

On Friday, during a comment, a Reddit spokesperson directed Business Insider to the report on the results of the company’s fourth quarter. Reddit’s chief of the operation, Jen Wong, said in a profits call on February 12 that the company had “general growth” in all advertising lists, with 10 of its 15 verticals increasing by more than 50% of one year on the other. Wong said the areas that have seen the most growth were finance, retail, automotive, pharmacy, games and technology.

“We continue to focus on: one, the conduct of the performance of our advertising solutions through the objectives; two, improving conviviality for our advertisers and our productivity for our sales force; and three, offering our advertisers and reddit-unique advertising solutions and formats,” said Wong during the call.

businessinsider

William

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