This year, reddit will reach $119.0 million in net US ad revenues, giving it a 0.1% share of the US digital ad market. By 2021, its revenues will more than double to $261.7 million, bumping its share to 0.2%.
“The company has retooled its ad offerings over the past year, which included the launch of new ad formats like autoplay in-stream video, cost-per-click, app install and ‘Top Post Takeover,’ which allows brands to have their ads appear on the site’s front page,” said eMarketer forecasting director Monica Peart. “Like most of the companies for which eMarketer produces estimates, advertising is not reddit’s only source of revenue.”
Because of the much later launch of its mobile app, more of reddit’s revenues come from desktops and laptops compared with other popular websites. This year, mobile will account for 57.0% of its revenues ($67.8 million). But some advertisers are still on the sidelines, despite double-digit revenue growth.
“As a mix of forum and trending news site with a bit of social network, reddit has operated on an ‘open internet’ ethos,” Peart said. “While that has yielded organic growth among a hard-to-reach audience, it has also meant a reality where controversial content is the norm. And in a news climate where missteps can tarnish results, that makes some digital advertisers nervous.”