Reddit revenue soars as it bets on AI and advertising
Reddit reported his win in the second quarter on Thursday and it is clear that the focus of the company on AI grew up considerably.
An important investment area is the growing of its advertising company, supported by its AI-driven marketing tools. The results showed that the majority of Reddit income stemes from advertisements, which yielded $ 465 million, which represents 93% of Reddit’s total turnover.
Last month, the company launched two new positions for advertisers: Reddit Insights, a tool that makes the billions of messages and comments on the platform to recognize trends and to offer real-time insights for campaign strategies and conversation overview, with which advertisements show the discussions of Reddit users in advertisements, Public Opinions.
The company also saw growth in its category “other income”, which includes its data permit activities – which means that the deals with AI providers for access to its data. Reddit said that the category year by year increased by 24% to $ 35 million, an increase of $ 28.1 million in the same period a year earlier.
Reddit has already set up content license agreements with major players in AI, including Google and OpenAi. Although these deals are still new, the results of the second quarter point to a steady income flow that has a considerable potential for the long term.
Another important AI-driven function is the Reddit Answer Tool, which was launched in December. This tool, which offers answers in a conversation interface, has attracted 6 million weekly users, a considerable leap from 1 million Users in the previous quarter.
In one Letter to shareholdersReddit CEO Steve Huffman said the platform works to “integrate the tool” deeper into the core search experience to “make a central function in Reddit”.
