Reddit’s missing business model: Embedding commerce in culture

-Accuracy of targeting potential customers

So Reddit’s small scale makes it challenging for them to compete with platforms for top of funnel advertisements, but what about the lower levels of the funnel? The next phases, Consideration and Evaluation, are when the customer is searching for the information. Google and Amazon are integrated into buyer journeys at this stage, and ads on these p... See more

: Subscribers of a subreddit can collaborate their resources towards an economic goal, as we have seen in GameStop and AMC. But these transactions do not happen on Reddit, which can be changed. The good folks at PartyDAO recently launched a new product, PartyBid, that lets people form teams to bid on NFTs by pooling their resources and bid on multi... See more

One question that pops straight up is how the value is shared when a subreddit is monetized. My view here is that the moderators and Reddit split this value. The moderators have worked tirelessly for a very long time for free, and this seems like the right incentive for them to take this up full time, improving the quality of subreddits.

It is pretty visible that Reddit is under-monetized. Twitter, for example, earns 25x more revenue per MAU than Reddit. Roblox has less than 50% of Reddit’s MAU but it makes 11x more revenue per MAU.

The purpose of having a creator profile is to allow users to quickly understand if they want to follow/engage with a creator. The other purpose is to make creator monetization easier through tips, subscriptions, product-listing, etc. Reddit’s creator profiles can do with a few coats of varnish in both these aspects. Reddit should also consider prov... See more

Digital advertisers look for three things in a platform when placing ads:

Digital ad efficiency = Scale * Likeliness of ad to be clicked * Targeting Accuracy

Reddit currently has less than 0.5% of the global digital ads market. For the sake of comparison, Google has 28.9%, Facebook has 25.2%, and Amazon has 10.7%.