Reddit is setting its sights on a new revenue stream by potentially monetising its search results pages. This move is seen as a logical progression for the platform, which currently boasts over 1 billion searches each month. By introducing advertisements on these pages, Reddit aims to enhance its monetisation strategies, following significant improvements to the core search experience.
For years, Reddit has enjoyed a boost in traffic from Google, with its content being indexed and attracting new users who are actively searching for information and communities. This integration with Google has not only brought in new members but also highlighted the platform's utility as a hub for targeted, intent-driven searches. Recognising this potential, Reddit is now considering implementing search ads, seeing it as an untapped opportunity to generate more revenue.
Why does this matter?
Reddit's potential venture into search advertising represents a promising avenue for advertisers to reach users who are already showing high intent. This development comes at a time when trust in traditional giants like Google seems to be waning. Advertisers looking for diverse platforms to place their ads might find Reddit's new strategy particularly appealing. Steve Huffman, CEO of Reddit, noted during the company's latest earnings call that, “There are no ads today on search result pages. But that's a very high-performing product elsewhere on the internet. And I think there's no reason to believe that it wouldn't be for Reddit because the intention is so explicit when users are searching.”
What's next for Reddit?
Before fully committing to search ads, Reddit is concentrating on enhancing its search functionality. The planned improvements for this year include better back-end performance, an upgraded autocomplete feature, and a revamped user interface. The company believes that perfecting the search user experience is essential before it can start monetising through ads. As it works on improving discovery and leveraging explicit search intent signals, the platform sees advertising as a natural complement to its services.
While no specific timeline has been set, Reddit's strategy indicates a strong commitment to extracting more value from its substantial search volume by eventually opening up ad inventory once its revamped search product is fully operational.
