Reddit - The Worst Monetization Failure In History

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Published 2024-04-08
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Did you know that Reddit is the 3rd most visited website in the US and the 8th most visited website in the world? Despite this insane popularity, Reddit doesn’t make any money. In fact, Reddit still struggles to even pull in $1 billion per year. For perspective, Google and Facebook both pull in $100 billion per year in revenue. One of the main reasons for this is that Reddit never focused on monetization. They didn’t even fully build out their ad platform till 2018, but even if they had tried to monetize earlier, it would have been no walk in the park. You see, Reddit’s demographics aren’t the most susceptible to monetization. If anything, they’re against ads, overconsumption, and gluttony which are the driving factors of platforms like Instagram. This video explains the various challenges Reddit has faced in monetizing the platform and why the company struggles to make money despite their massive user base.

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Timestamps:
0:00 - The State Of Reddit
2:06 - Fake It Till You Make It
5:18 - Unfavorable Demographics
8:47 - A New Strategy

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All Comments (21)
  • @planesrift
    The monetization is so bad that I use it way more frequently than other apps.
  • @jme2006
    Reddit's lack of hypermonetization is actually the reason why it's usable compared to every other platform. If anything, this should be taken as a good sign.
  • @darrenzou2225
    honestly reddit awards were good for monetization but then they did free awards and it made 0 sense. the biggest attrocity is reddit search algorithm which is completely garbage
  • @bornashamloo
    Reddit is 100% gonna kill old.reddit like they killed 3rd party apps and Rewards
  • @mothra__13
    The idea that you can be unfiltered on Reddit is laughable.
  • @_Super_Hans_
    I stopped using Reddit when they banned the clients.
  • @user-hi1et2tb5u
    Big shout out to the U.S they love Reddit and Porn hub apparently.
  • @deletedaxiom6057
    One thing overlooked in your history is the affect of Arron Swartz after his company infogami merged with Reddit, very soon after Reddits creation. Arron Swartz was a very idealistic person who believed in the free flow of information. I think his ideas and philosophy is what many of the original user base gravitated towards.
  • @jakeadams2562
    I’ve ran Reddit ads in the past and am 99% sure my impressions were drastically inflated by bots and fake views lol
  • @zengrz
    The problem is not the monetization techniques, it is the audience of the website and nature of the business.
  • reddit should just add something like $1 a year for complete app customisation or some other fun gimmick, it would probably raise their income 50%😂
  • @Maximus5641
    5:50 i was thinking 'I wonder if he actually owns that vehicle'
  • @IanChristopher
    Reddit is one of the few websites that I used without an ad-blocker, their monetization is so bad I often didn't notice any ads
  • Reddit is good for Marketing. I used to work in a marketing department for a manufacturer. I recommended they use Reddit to engage their customers because we sold plumbing equipment and it gave us an area where we can answer questions and discuss technical features in depth.. long story short it made great sense but I left the company before it was properly acknowledged and the marketing staff just didn’t understand Reddit. Manufacturers could make subreddits for their products and brands meaning you could go directly to the source instead of secondary/tertiary information sources.
  • @nedalsoned9940
    its hard to monetize a hangout spot for unemployed people
  • @just_jedwards
    In what world did reddit "popularize" the acronym NSFW? That's been in common online usage at least back to the hayday of the something awful forums in the early 2000s and used frequently there, on fark, etc.
  • @cjxgraphics
    The irony of forcing advertising on a website, who's user base is well known for absolutely hating advertising. And then there are the many AMA's. Some of them are great, and we get great responses from celebrities and companies alike! But then there's the one like Google did the other day, where they completely ignored every single issue that has been nagging Google users for years. Reddit is an interesting beast; currently one of the best archives of human knowledge (since Google has become so damn useless for searching lately), and at the same time one of the scummiest underbellies of the internet. But that's all just my 2 cents and doesn't change a thing in the end. Just like my posts and comments on Reddit.
  • @baller6382
    Honestly Reddit sacrificing monetization to become an AI trainer might be their best path forward. Users stay happy with less ads, Reddit makes bank from ai companies.
  • @--zero
    Another thing that helped Reddit a lot at its start is that the website Digg (which was/(is?) similar in function to Reddit) pushed out an update that changed the layout, and a lot of people on Digg really hated the update, so there was a mass migration of Digg users to Reddit.