Reddit Posts Q2 Performance Report For 2024 With Steady Rise In Revenue And Users Amid Tests For AI Search
Reddit just rolled out its latest performance report for 2024. The company delineated a steady growth in users and revenue for the second quarter.
Additionally, Reddit spoke about seeing growth in different markets. This is all related to its keen interest in adopting new technology and delivering better returns on advertising.
For starters, Reddit’s stats included 8.5 million more users during this time, hitting the 91.2 DAU (daily active users) mark. This is a great rise as the growth was coming from both American and global markets.
Several social media platforms witnessed similar growth in developing countries but when it comes to the US and EU, it fell short. The former and latter are the biggest markets for spending on social media ads. This is why seeing Reddit expand its reach in these markets is a good sign of growth.
As per experts, expanding in both markets of the world is a great sign for more growth in the future.
As far as its figures for average users every week were concerned, Reddit stood at 342 million during Q2. This was a 57% growth from 2023, marking another significant gain for the company.
When you come to think of it, Reddit is seeing a fourfold growth in users every week, similar to what it sees each day. This is much higher than any social media platform’s average and can be thought of as like 2:1 ratio.
The company’s audience is more transitory in nature. By this, we mean users who check subreddits less often. Therefore, the app could give rise to a bigger and better outreach than what’s suggested here for daily users. This is where advertisers might benefit.
Moving on to revenue. Reddit recorded $281 million for the second quarter which is a 54% growth from the previous year. On that note, Reddit claims that it’s close to double the figures seen in 2023 with great improvements to advertising products and more emphasis on SMBs. this could assist in getting more ads.
The company also made headlines for its plans to introduce more Generative AI. Thanks to Memorable AI, Reddit’s partners will benefit from greater ad performance. But it’s not just ads that are making headwaves. The company’s ‘other’ category for revenue saw the arrival of $28 million which is a massive 690% growth YoY.
The news comes as Reddit gears up to introduce more AI projects and use large language models. At the moment, its prices for API access are at an all-time high. Meanwhile, it’s garnering more partnerships with different companies such as Google to better revenue opportunities.
We similarly saw the company raise concerns when it prevented other search engines from crawling its pages. In response to that, Reddit says that this past quarter was all about greater protection and control of its content.
It wished to restrict access to web crawlers and explore more options for licensing partnerships and better financial opportunities. To put it simply, the platform is looking out for its best interests. Anyone planning on scraping data online from its pages for free will no longer be allowed to do so.
If you ask us, Reddit’s report card displays great promise and potential for the future. It hopes to better usage and revenue options with time. This combined with the rollout of AI summaries to its Search pages will assist in exploring more communities.
So if you’re an avid Reddit user, be ready to see greater AI features as that’s currently trending on the app’s radar.
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