Latest news with #CommunityIntelligence
Yahoo
2 hours ago
- Business
- Yahoo
Reddit Expands Ad Platform With New Suite: Can the Launch Pay Off?
Reddit RDDT continues to scale its advertising business by turning real-time community engagement into a source of strategic insights for brands. As advertisers seek platforms that combine scale with authenticity, Reddit's community-led model is gaining momentum across performance and brand recently launched Community Intelligence, a new suite designed to help marketers monitor live conversations across subreddits, extract trend signals and optimize campaign decisions. The toolset enables advertisers to analyze sentiment, product mentions and emerging topics in real-time, thereby transforming Reddit's open-conversation network into a dynamic planning engine. The new suite builds on Reddit Pro and supports full-funnel execution — from awareness to conversion. With Community Intelligence, Reddit positions itself as a platform that turns live user experiences into actionable insights, enabling brands to track cultural relevance and act on user-driven demand engagement continues to strengthen on Reddit, acting as a key catalyst for its advertising growth. In the first quarter of 2025, Weekly Active Users reached 401 million, while Daily Active Uniques hit 108 million — both up 31% year over year. The platform's community-led discussions and open-web visibility are attracting users seeking authentic, experience-driven content across diverse growing engagement is driving strong advertiser adoption. In the first quarter of 2025, Reddit reported advertising revenue of $358.6 million — up 61% year over year — and beat the Zacks Consensus Estimate by 5.9%. Performance campaigns accounted for 60% of total ad spend, reflecting growing traction among mid- and lower-funnel marketers invest in context-aware tools to navigate shifting consumer behavior, Reddit expects Community Intelligence to deepen advertiser traction and support recurring ad-revenue momentum. Reddit's advertising business faces stiff competition from Alphabet GOOGL and Meta Platforms META, both of which are expanding their AI-driven advertising is strengthening its lead through Google Ads and YouTube, offering large-scale performance marketing across search and video. Alphabet's ecosystem is deeply integrated with user behavior signals, but it lacks Reddit's community-led format that enables real-time insight from open Platforms continues to strengthen its advertising capabilities across Facebook, Instagram and Reels. With tools like Advantage+ and automated delivery, META Platforms enables personalized ad campaigns for global brands. However, unlike Reddit, Meta Platforms does not surface real-time user discussions that help advertisers track community sentiment and emerging trends. RDDT shares have plunged 18.1% year to date, while the broader Zacks Computer & Technology sector returned 1.6% and the Zacks Internet - Software industry increased 13%. Image Source: Zacks Investment Research Reddit stock is trading at a premium, with a forward 12-month Price/Sales of 11.8X compared with the Computer and Technology sector's 6.36X. Reddit has a Value Score of F. Image Source: Zacks Investment Research The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at 19 cents per share, unchanged over the past 30 days, implying an improvement from the year-ago quarter's loss of 6 cents per share. Reddit Inc. price-consensus-chart | Reddit Inc. Quote The consensus mark for Reddit's fiscal 2025 earnings is pegged at $1.21 per share, which has remained unchanged over the past 30 days. The figure marks an improvement over fiscal 2024's loss of $3.33 per currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report Reddit Inc. (RDDT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
10 hours ago
- Business
- Globe and Mail
Reddit Expands Ad Platform With New Suite: Can the Launch Pay Off?
Reddit RDDT continues to scale its advertising business by turning real-time community engagement into a source of strategic insights for brands. As advertisers seek platforms that combine scale with authenticity, Reddit's community-led model is gaining momentum across performance and brand campaigns. RDDT recently launched Community Intelligence, a new suite designed to help marketers monitor live conversations across subreddits, extract trend signals and optimize campaign decisions. The toolset enables advertisers to analyze sentiment, product mentions and emerging topics in real-time, thereby transforming Reddit's open-conversation network into a dynamic planning engine. The new suite builds on Reddit Pro and supports full-funnel execution — from awareness to conversion. With Community Intelligence, Reddit positions itself as a platform that turns live user experiences into actionable insights, enabling brands to track cultural relevance and act on user-driven demand patterns. User engagement continues to strengthen on Reddit, acting as a key catalyst for its advertising growth. In the first quarter of 2025, Weekly Active Users reached 401 million, while Daily Active Uniques hit 108 million — both up 31% year over year. The platform's community-led discussions and open-web visibility are attracting users seeking authentic, experience-driven content across diverse topics. The growing engagement is driving strong advertiser adoption. In the first quarter of 2025, Reddit reported advertising revenue of $358.6 million — up 61% year over year — and beat the Zacks Consensus Estimate by 5.9%. Performance campaigns accounted for 60% of total ad spend, reflecting growing traction among mid- and lower-funnel advertisers. As marketers invest in context-aware tools to navigate shifting consumer behavior, Reddit expects Community Intelligence to deepen advertiser traction and support recurring ad-revenue momentum. RDDT Faces Stiff Competition Reddit's advertising business faces stiff competition from Alphabet GOOGL and Meta Platforms META, both of which are expanding their AI-driven advertising capabilities. Alphabet is strengthening its lead through Google Ads and YouTube, offering large-scale performance marketing across search and video. Alphabet's ecosystem is deeply integrated with user behavior signals, but it lacks Reddit's community-led format that enables real-time insight from open discussions. Meta Platforms continues to strengthen its advertising capabilities across Facebook, Instagram and Reels. With tools like Advantage+ and automated delivery, META Platforms enables personalized ad campaigns for global brands. However, unlike Reddit, Meta Platforms does not surface real-time user discussions that help advertisers track community sentiment and emerging trends. RDDT's Share Price Performance, Valuation and Estimates RDDT shares have plunged 18.1% year to date, while the broader Zacks Computer & Technology sector returned 1.6% and the Zacks Internet - Software industry increased 13%. RDDT's Performance Reddit stock is trading at a premium, with a forward 12-month Price/Sales of 11.8X compared with the Computer and Technology sector's 6.36X. Reddit has a Value Score of F. RDDT's Valuation The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at 19 cents per share, unchanged over the past 30 days, implying an improvement from the year-ago quarter's loss of 6 cents per share. The consensus mark for Reddit's fiscal 2025 earnings is pegged at $1.21 per share, which has remained unchanged over the past 30 days. The figure marks an improvement over fiscal 2024's loss of $3.33 per share. Reddit currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alphabet Inc. (GOOGL): Free Stock Analysis Report Meta Platforms, Inc. (META): Free Stock Analysis Report Reddit Inc. (RDDT): Free Stock Analysis Report
Gizmodo
2 days ago
- Business
- Gizmodo
Reddit to Turn Positive Posts Into Ads for Brands
The next time you recommend a product or service to someone in conversation on Reddit, it might turn into an advertisement for the company. A new feature announced by the social media site at the Cannes Lions International Festival of Creativity will allow brands to take positive comments posted on Reddit and display them right under advertisements on the platform. The feature, called Reddit Community Intelligence, will integrate conversations happening on Reddit into a company's marketing efforts. So, for example, an advertisement for Lucid Motors might pull popular threads from users who have talked up their experience with the company's cars. Those posts are curated by AI and displayed directly below the company's ad spot. Reddit claims tests of the feature have led to a 19% higher clickthrough rate than standard ads. Which…that's cool, I guess, if you're an advertiser. If you're a user, you're seeing ads take up a bit more screen space. And you're potentially seeing your posts and conversations turned into free advertising for a company. Presumably, if you're talking positively about a brand, you might not care if you see that turned into a marketing campaign. Social proofs certainly aren't a new concept in marketing and are a cheap and easy way to establish credibility by tapping user feedback. Of course, it does not seem Reddit will be giving a cut of those conversions to the Redditors who made the posts in the first place, though one could argue their content is at least in part leading to more sales. During a conversation with Axios on Monday, Reddit's CEO, Steve Huffman, made the case that the feature is just taking advantage of what is already happening naturally on Reddit. 'Half of the conversations on Reddit are basically commercial in nature,' he said. 'It turns out within every hobby, within every passion, within all these travel decisions, you're actually kind of deciding what to buy next.' A recent article from Marketing Brew highlighted that more and more users are searching Reddit for help making decisions, finding it to be more human and authentic than alternatives like Google search results. So Reddit is cashing in on the trend. This is the latest in a massive monetization effort from Reddit, which would really like to prove it has a reliable model for growth and revenue now that it's a publicly traded company. Earlier this year, the company's CEO talked up a paywall feature for subreddits that would lock some exclusive content behind a subscription model, which Reddit would presumably skim a percentage off the top for facilitating the transaction.
