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Social - December 16, 2023

Reddit users are the least valuable of any social network

Reddit users are the least valuable of any social network 2

Reddit’s contemporary funding spherical values its customers at a decreasing rate than every other social community.

The enterprise introduced Monday it had raised $300 million in its Series D investment spherical at a valuation of $3 billion. CNBC previously stated the agency’s annual revenue crowned $100 million, in keeping with resources familiar with the matter, and at 330 million month-to-month active customers (MAUs), this will make Reddit’s average sales consistent with the person (ARPU) approximately $0.30.

Reddit did not at once respond to a request for the remark regarding its modern-day sales details.

That estimate would make Reddit’s ARPU notably decrease than different social networks, even those with comparable MAUs. Twitter, for example, reported 321 MAUs for its trendy quarterly document, and with annual revenue of approximately $3.04 billion in 2018, that would make its ARPU about $9.48.

Facebook stated 2.32 billion MAUs in its today’s file and ARPU of $7.37. Snap does no longer file international MAUs but reported $2.09 ARPU in its modern-day quarterly file.

Pinterest, which has but to head public however is preparing for an IPO this yr, says on its internet site it has 250 million month-to-month customers. Pinterest declined to touch upon their revenue, but a September article in The New York Times stated the business enterprise turned into on target to pinnacle $700 million in revenue for 2018. That would carry its ARPU to about $2.80.

Reddit users are the least valuable of any social network 3

So, in descending order:

  • Twitter ARPU: ~$9.48
  • Facebook: $7.37
  • Pinterest: ~$2.80
  • Snap: $2.09
  • Reddit: ~$0.30

While Reddit’s fee in keeping with the user is an awful lot lower than its peers, it is betting its get admission to a treasured demographic will attraction to advertisers and probably even draw their dollars from large opponents like Facebook and Google. The business enterprise said half of its MAUs are between the while of 18 and 24.

“When we speak approximately competing for advert greenbacks, of direction, we speak approximately Facebook and Google, who absorb the substantial majority of ad spend,” stated Reddit CEO Steve Huffman in an interview with CNBC. “We are competing with all of us, or everywhere humans spend their free time.”

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