Reddit’s second-quarter earnings revealed a significant focus on AI, especially in boosting its advertising revenue, which totaled $465 million, accounting for 93% of its overall revenue. Recently, Reddit introduced two new advertising features: Reddit Insights, which analyzes platform data for trend identification and campaign strategies, and Conversation Summary Add-ons that incorporate user discussions into ads for authentic brand engagement. The company’s “other revenue,” covering data licensing with AI firms like Google and OpenAI, also surged by 24% year-over-year, reaching $35 million. Additionally, the Reddit Answers tool, launched in December, has seen rapid growth, attracting 6 million weekly users compared to just 1 million the previous quarter. CEO Steve Huffman emphasized the goal of deeply integrating this tool into Reddit’s search functionality to enhance user experience. Overall, these developments underscore Reddit’s strategic investment in AI and its potential for sustained revenue growth.
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