Reddit Reveals Its Daily Active Users For The First Time, A Metric That Other Social Media Platforms Traditionally Share

Source: Reddit

Reddit revealed that it has 52 million daily active users.

This marks the first time it has ever publicly shared its daily active users, a metric that other social media platforms like Facebook, Instagram, and Snapchat often share. 

“We’re sharing [daily active users] for the first time as a more accurate reflection of our user growth and to be more in-line with industry reporting. We’re focused on daily usership and increasing this number as we continue to grow our community and scale our advertising business,” Jen Wong, Reddit's chief operating officer, told The Wall Street Journal. 

Reddit's 52 million daily active users are quite small compared to others in the social media space, yet it's notable since it's a 44 percent year over year increase for October. 

As with other platforms, Reddit's growth can be attributed to the pandemic and a general uptick in people spending more time on their phones. However, a series of strong recent moves, including launching new features, Galleries and Polls, and improving brand safety, have also played a significant role.

Along with user growth is an increase in advertising dollars. According to Wong, the platform's revenue is expected to increase by more than 70% this year, putting it at around $170 million in ad revenue for 2021. 

Insights:

With increases in daily users and ad revenue, it’s clear Reddit is heading in the right direction. However, it's still relatively an untapped platform. Despite it being a household name thanks to its popular Ask Me Anything (AMA) series, its value isn't as clear as shiny platforms like Instagram and TikTok. This should change as daily active users increase and as more brands spend experimental dollars on advertising.

From now on, it will be using daily active users as its metric for growth like other traditional social media platforms, which will help make it top of mind for brands when considering what social media platforms to invest in, whether that’s time or money.

In a year like no other, marketers have been looking for new and different ways to reach new audiences. Reddit’s highly engaged, passionate community that spans across topics ranging from gaming to beauty provides them to do just that.

Whether it's running promoted content, creating their own branded subreddits, or working with Reddit moderators in an influencer nature to share authentic content with their respective communities, Reddit can be an effective platform for brands to drive awareness and engagement and build community and trust.

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SOURCE: The Wall Street Journal