With these ideas, Reddit is trying to make some money
Affiliate Links, App, its own photo service – Reddit is on the search for the gold mine
Reddit is one of the largest platforms in the world. Nevertheless, the company makes relatively little revenue and doing extremely heavy with the monetization. The passionate Community advertising accepted only in small steps. So Reddit is now planning a new strategy and wants to convert each shop link on the platform in an Affiliate Link. We will show how this works and see what other lever to use Reddit to earn some money at last.
Longer Reddit is struggling to find the right monetization strategy. In spite of about 234 million active users who spend an average of 13 minutes per session and, according to the analysis Tool Similar Web over a billion Visits in the month long time, there was no real marketing. Many Advertisers saw parts of the content as a suitable advertising environment, finally, there were always Controversies of Celebrities stolen and Reddit posted Nude photos (“The Fappening”), or misogynistic themes (“gamer gate”). On the other hand, the Reddit Community is very critical when it comes to matching ad formats or advertising.
How can you make it to the Community right?
Meanwhile, there are native advertising formats on the platform that look like Posts from the Community. The company is based on the example of Facebook. As a customer Reddit US was able to attract companies such as Vice, Newsweek and the cable channel A&E. Employees of the platform to help Advertisers to find the right kind of communication for the Community. This curriculum has been designed to Zubair Jandali as Vice President of Sales at Reddit. Previously, he worked at Google as an Advertising Manager. He should provide more money in the cash register, finally, Reddit is part of the Condé-Nast-Verlag and must, at some point in the black.
Nevertheless, sales are expected to rise in 2016 to only 20 million US dollars. Previously, the company had hoped, according to The Information of 35 million US dollars. This is for a page with a 500-million-Dollar valuation and more than 100 employees, very little – the company also lives by a 50-million Dollar Investment contributed to two years ago, including Jared Leto and Snoop Dogg a few dollars. For comparison: Facebook indicates that the company generated in the first quarter of 2016 an average revenue per user of just over US $ 3.30. In the USA the figure is over twelve dollars. Reddit makes per user, with a turnover of just over eight cents – if the annual turnover of 20 million US dollars is achieved.
Examples of Native Ads in Reddit
The requirements for Advertising on the platform are actually not so bad. Recently, Reddit Co-founder Steve Huffman made in an Interview with The Next Web, with its statements about the Targeting at the Community’s excitement: “Our Targeting will be different than that of Facebook, because we know all of your interests . And to share not only what you’re ready to take on Facebook, but your darkest secrets. We know everything.“ Immediately, it was discussed in the Reddit community, heatedly, whether Huffman’m actually being serious or just joking. However, Reddit has confirmed that it will offer Advertisers soon quite Targeting by Keyword and Interest.
New Affiliate Strategy
The most recent attempt in a series of different measures, with which the company wants to create the turn, are Affiliate Links. On 6. June 2016 do you want to start. In a Reddit Post, the Team of developers announces that the platform post the shop links provided for a portion of the user automatically with Affiliate Codes. The users click on these Links Reddit for subsequent sales Commission from the Online stores. Later the Feature will be extended to the entire platform. Then everyone on Reddit posted the shop link to a total of 1,500 Online retailers will be supplemented, on a technology from Viglink to Affiliate Code. In the USA, Viglink works with publishers such as Cnet or Reuters, and online merchants like Ebay, Amazon, Foot Locker, Booking.com and Nike. The Tool Viglink Convert will be included in the source code of the page and provides all the Links that are posted to Partner-shop automatically with the appropriate Affiliate code.
Of course, this announcement caused a controversial discussion in the Community. In early 2015, the URL Shortener Bitly had to fight with a lot of criticism because he had also started with Viglink, to complement any shortened URL from Bitly users without a Premium Account with an Affiliate Code. Anyone who clicks on such a Link starts automatically the Cookie in the respective network advertising on the landing page – this is the practice of Viglink, many Reddit users encounter. Because the function of the platform is the same as in the case of Bitly. So rowed Reddit a bit back, posted the Opt-Out opportunity from the entire Viglink universe and described how the user can right-click and Copy the link, the Affiliate function unique handle.
Own photo service, and the break with Imgur
Before the Test the Affiliate function it became known that Reddit is planning its own photo service to post pictures on the platform. Before Imgur was for the Community, the Tool of choice, and together with Reddit grown. The users can use the new function in the first communities, such as Art, Aww, Food, and Funny already. It is now possible to load the images directly into the Post and publish it. Previously, Reddit users had to go the detour via Imgur, the image-upload and the Link to the platform post. Reddit should expect from the new feature, the more Pageviews, the migrated previously to Imgur, and more control over the content that users upload.
To get even more Traffic to your own site, has introduced the platform also Recently announced an Embed function. It is an open secret that Viral Sites like Buzzfeed, Upworthy, and violently.co content from Reddit-mouth. Now the page is hoped that this Publisher incorporate more of the original Reddit Posts, as it happens with Twitter, Facebook or Youtube content. In addition to Traffic that might bring new marketing opportunities. Twitter, for example, offers the opportunity to place in the embedded Timelines advertising, something Similar would also be embedded in Reddit content.
Finally a Mobile strategy
Ad in the Reddit App
For a long time had ignored the Reddit Mobile. Since the Community-beloved Desktop page looks like from the year 1995, is expected the surprise but anyone. A responsive page, it is only Recently, and many users had to manage with third-party Apps like Narwhal, bacon reader or Antenna. That changed, at least in the United States in April 2016. The official Reddit App jumped there in the App Store immediately on the first place. Meanwhile, they arrived at rank 334, is in the category of “News” but stable rank 2. The development in the Google Play Store is similar. With the App Reddit can rely on for the platform a whole new Adformate. Between the recommended Subreddits about App-Install-Ads from major partners such as Amazon, or the German game developer Wooga.
Of course, it also gave the new App a lot of criticism from the users. However, partly controlled by the previously active providers of Client Apps such as Alien Blue. This benefited from the Mobile-weakness of the platform, accumulated millions of users and could use this to play their own advertising. Now their business model is in danger, and shortly after the release of the official App Apple blocked the most popular third-party Apps because of pornographic content. In the meantime, these are available again, and Reddit is contesting for the deletion, but the Image of the App is scratching among the users. So right to rest one of the biggest platforms in the world, so probably never.