Reddit is a social news aggregation and discussion website that allows users to submit content and vote on it. The website generates revenue through advertising, premium membership, and partnerships.
Advertising is the primary source of revenue for Reddit. The website offers various advertising options, including sponsored posts, display ads, promoted trends, and video ads. Advertisers can target their ads based on demographics, interests, and subreddits. According to Statista, Reddit's advertising revenue was $119 million in 2020, up from $100 million in 2019.
Reddit also offers a premium membership program called Reddit Gold. Users can purchase Gold to access premium features such as ad-free browsing, custom themes, and the ability to create their subreddit. Reddit Gold costs $3.99 per month or $29.99 per year. The website does not disclose how much revenue it generates from Reddit Gold.
In addition to advertising and premium membership, Reddit has partnerships with other companies. For example, in 2020, Reddit partnered with Tagboard, a social media display company, to allow broadcasters to display Reddit content on their broadcasts. The website also has partnerships with various media companies, including NBC and ABC News, to provide content for their websites.
Overall, Reddit's revenue in 2020 was estimated to be around $119 million, primarily from advertising. The website has been growing rapidly in recent years, with over 430 million monthly active users as of 2021, making it an attractive platform for advertisers and partners.