Reddit has released its third performance report as a
publicly listed company, revealing solid growth in both user numbers and
revenue for Q3. The platform's daily active uniques (DAUq) increased to 97.2
million, a rise of 6 million compared to Q2. This growth was driven by both
U.S. and international markets, with Reddit crediting its efforts in developing
translation tools for helping it expand into new regions.
More than half of the user growth in Q3 came from
international traffic, as Reddit sees early momentum with its machine
translation strategy across geographies. The platform has been expanding its
post translation options to more languages throughout the year, enabling more
people in various regions to engage with the app.
Despite its expanding global reach, Reddit remains heavily
reliant on its U.S. users for revenue. This presents a significant opportunity
for the platform to generate more income from other markets as it gains
traction and presence in these regions.
In terms of revenue, Reddit brought in $348.4 million for
the quarter, a substantial 68% increase year-over-year. This growth highlights
the efforts Reddit has made to build its business and make its platform more
advertiser-friendly. As more people seek authentic human insights to inform
their purchase decisions, Reddit has become a key consideration for many
marketers.
Reddit notes that "Reddit" has been the sixth most
Googled word in the U.S. in 2024 thus far, underscoring the value that people
now see in Reddit content. This trend may also account for the variance in
daily and weekly user numbers, as many people now add "Reddit" to
their Google searches and visit the platform on a case-by-case basis, rather
than logging in daily.
In addition to advertising revenue, Reddit is also
generating income from data sales. As AI developers seek human input for their
language models, Reddit's data is considered especially valuable due to its
consumer insights. The platform generated $33.2 million in "Other"
revenue in Q3, which includes data licensing revenue, marking an impressive
547% increase year-over-year.
Reddit has introduced several product updates and
improvements to enhance user experience and engagement. The revamped "Ask
Me Anything" format has led to a fivefold increase in the number of AMAs
created on the platform. Reddit is also focusing on improving its search
options, both for users coming from external search engines and those searching
directly within the app.
As Reddit continues to evolve its ad options in alignment
with changing usage trends, it presents a growing opportunity for marketers to
reach and engage with their target audiences on the platform.
As Reddit's user base and advertising opportunities continue
to grow, businesses can leverage the power of social media marketing (SMM)
panels to enhance their presence on the platform. TopTierSMM is a trusted SMM
panel that offers a wide range of services to help businesses increase their
reach and engagement on Reddit.
By utilizing TopTierSMM's services, such as boosting
upvotes, comments, and followers, businesses can maximize their visibility on
Reddit and tap into the platform's valuable user insights. As Reddit's
relevance and utility continue to rise, investing in an SMM panel can be an
effective strategy to stay ahead of the competition and drive results on the
platform.