Reddit has reportedly shared that it averaged 52 million daily active users in October 2020. This marked a 44 percent increase compared to October last year. The social media platform has shared this data for the first time and in a bid to rope in more advertisers, along with being in line with industry reporting. Reddit COO Jen Wong also shared that the company’s advertisment revenue was more than $100 million (roughly Rs. 7,400 crore) in 2019 and is on track to increase by over 70 percent this year.
Reddit was founded in 2005 and acts as a platform to thousands of communities and discussions. For the first time, the social media firm has shared its user statistics and told Wall Street Journal that it averaged 52 million daily active users in October 2020. It marked a 44 percent growth over last year for the same month. This growth has coincided with growth in Reddit’s advertising business, the report adds.
“We’re sharing [daily active users] for the first time as a more accurate reflection of our user growth and to be more in-line with industry reporting. We’re focused on daily usership and increasing this number as we continue to grow our community and scale our advertising business,” WSJ quotes Jen Wong.
Wong also shared that its total advertisement revenue was more than $100 million last year and is on track to increase by more than 70 percent this year. Though Reddit saw a decline in advertisement revenue in the second quarter of this year due to the coronavirus pandemic, it has rebounded quite significantly to show an 83 percent year-over-year (YoY) growth in the third quarter.
The report points out that though Reddit’s 52 million daily active users is impressive, but it is nowhere close to Twitter’s average monetisable daily active users (mDAU) at 186 million and Facebook’s reported 1.82 billion average daily active users in September.
Citing Susan Schiekofer, Chief Digital Investment Officer for ad-buying giant GroupM, the report states that Reddit is in the “experimental bucket of budgets” for advertising in gaming, beauty, technology, finance, and entertainment. Compared to the larger corporations like Snap, Twitter, Facebook, and Instagram, Reddit is nowhere close when it comes to advertising budget. Additionally, Wong reportedly stated that Reddit plans to grow its sales force to around 300 people by the end of this year and a further 75 percent over the next year.
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