Reddit continues to grow. With an additional 3.5 million daily users and a revenue increase of 71% in the last quarter of 2024, the platform demonstrates that its business focus is effective. For brands and advertisers, this presents opportunities, particularly due to the influence of Reddit users on purchasing decisions.
Increase in users and impact on purchasing behavior
Reddit now has 101.7 million daily users. Although it is still smaller than other social platforms, it stands out due to its in-depth, contextual discussions. 40% of internet users indicate that recommendations on Reddit influence their purchasing decisions more strongly than expert reviews. This makes the platform an interesting advertising channel for brands.
However, Reddit also faces challenges. Growth is entirely coming from outside the US, while the majority of advertising revenue comes from the American market. To address this, the platform is focusing on new markets and expansions outside the US.
Advertising revenues rise due to new tools
Advertising revenues rose to $428 million in Q4 2024. This success is primarily due to improved advertising options and new tools such as Reddit Pro. This dashboard helps marketers analyze trends and popular topics, allowing advertisements to better respond to current discussions.
Additionally, AI-driven features and automation lead to more efficient advertising campaigns. The new advertising format Ask Me Anything also attracts attention and enhances interaction between brands and users.
Growth through better accessibility
Reddit focuses on accessibility with enhanced translation services, allowing more international users to utilize the platform. This contributes to growth outside the US and expands the reach for advertisers worldwide.
For businesses and marketers, Reddit remains a platform with potential. The influence of users on purchasing decisions and the improved advertising opportunities make it a valuable space for targeted marketing campaigns.
SocialMediaToday