Reddit - The Worst Monetization Failure In History
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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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This video is not a solicitation or personal financial advice. All investing involves risk. Please do your own research.
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