Reddit’s newly launched AI marketing tools, introduced in June, are significantly boosting advertising revenue, with a remarkable 78% year-over-year growth, totaling $500 million. CEO Steve Huffman noted that 93% of this revenue stems from advertising, highlighting a major advertiser’s plans to utilize Reddit’s AI tools in an upcoming Super Bowl ad. The tools, including Reddit Insights and Conversation Summary Add-ons, have garnered positive reception, leading to a 50% increase in advertising accounts from April to June. Additionally, Reddit earned $35 million from AI licensing deals, notably a partnership with Google, enhancing the platform’s visibility in search results. The AI-driven Reddit Answers tool has surged to six million weekly users, providing diverse perspectives on inquiries. Reddit plans to optimize user experience by integrating a dedicated Reddit Answers search bar on its homepage. Despite the success, analysts caution that reliance on Google could hinder long-term growth, although user engagement remains strong, with 110 million daily active users.
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