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Reddit to Cross $100 Million in Ad Revenues in 2019

Some advertisers still cautious

March 27, 2019 (New York, NY) – Following a cleanup of its platform and revamped ad model, online social blog reddit is on pace to more than double its ad revenues by 2021. Reddit’s ad business will grow nearly 55%, crossing the $100 million mark this year, according to eMarketer’s latest US ad forecast.

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 instream 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.”

Reddit’s user growth will slow to single digits starting this year. In the US, 26.4 million people use reddit at least once a month.* eMarketer only considers someone a user if they have a reddit account and log in at least monthly. The site’s usefulness is not limited to users that have logged into the platform, as any visitor can read up on latest news, watch videos and discover subreddits; upvoting, downvoting, commenting and posting are limited to account holders. When factoring in logged-out users, reddit’s reach can be up to three times larger vs. logged-in users each month. This is important as all site visitors can see ads.

“Reddit’s users are tech savvy and highly engaged, making them attractive to advertisers,” Peart said. “A large portion are unique users, meaning they don’t use other social platforms. That means advertisers have the potential to reach new audiences in a highly targeted way.”

 

* internet users of any age who access their reddit account via any device at least once per month

 

Methodology
eMarketer’s forecasts and estimates are based on an analysis of quantitative and qualitative data from research firms, government agencies, media firms and public companies, plus interviews with top executives at publishers, ad buyers and agencies. Data is weighted based on methodology and soundness. Each eMarketer forecast fits within the larger matrix of all its forecasts, with the same assumptions and general framework used to project figures in a wide variety of areas. Regular re-evaluation of available data means the forecasts reflect the latest business developments, technology trends and economic changes.

 

About eMarketer
Founded in 1996, eMarketer is the first place to look for research about marketing in a digital world. eMarketer enables thousands of companies worldwide to understand marketing trends, consumer behavior and get the data needed to succeed in the competitive and fast-changing digital economy. eMarketer’s flagship product, eMarketer PRO, is home to all of eMarketer’s research, including forecasts, analyst reports, aggregated data from 3,000+ sources, interviews with industry leaders, articles, charts and comparative market data. eMarketer’s free daily newsletters span the US, EMEA and APAC and are read by more than 200,000 readers globally. In 2016 eMarketer, Inc. was acquired by European media giant Axel Springer S.E.

 

For more information, contact:
Douglas Clark
Global Director of Public Relations
646-863-8807
dclark@emarketer.com

Corinne Weir
Public Relations Coordinator
646-863-8814
cweir@emarketer.com

Posted on March 28, 2019.