Where Reddit differs among its tech peers is in its striking dependence on its user base to keep things operational. Reddit must keep its users satisfied and its efforts to expand its limited (and already unpopular) advertising formats could send users packing. 98% of Reddit’s revenue is made up of advertising income. And of that, 26% came from just 10 ad clients in 2023. Investors will be watching this closely and expect more diversity sooner rather than later
  • Lvxferre@mander.xyz
    45·
    10 months ago

    And of that, 26% came from just 10 ad clients in 2023.

    That’s interesting. Does anyone know which are those ad clients? It would be a shame if users were to shame them in public for advertising in a site full of nasty shit, like Reddit…

    The going rate for a content moderator around the world varies greatly, but for the sake of expedience, let’s say it might average around $50,000 a year. That’s $3 billion worth of free labor.

    …or if users publicly mocked Reddit jannies, oopsie moderators, working for free for a company that ridicules them as “landed gentry”…

    Reddit has a highly intriguing plan for counterbalancing these risks.

    “Intriguing” sounds like an euphemism for “experimental and with high chance to fail”.