Reddit, the popular social news aggregator that receives over 330 million active users per month, is reportedly trying to expand its operations while making an aggressive push to bring more advertisers to the site.
According to a report by CNBC that cites representatives of numerous advertising agencies, a 28-page business deck obtained by CNBC, and insiders familiar with the company’s financials, Reddit has been actively pitching companies and agencies over the last year regarding an increased internal effort to better commercialize its user base.
The insiders share that Reddit is on pace to surpass $100 million in revenue this year. While that will mark the most revenue in company history, it amounts to a fraction of the ad revenue of other websites with similar traffic. For instance, Twitter, which had 336 million monthly active users in the first quarter of 2018, pulled in $655 million in ad revenue during that same period.
The business materials obtained by CNBC detail a number of approaches the company is offering its clients, which reportedly includes JetBlue, Toyota, and Coca-Cola. One notable example is the use of Reddit AMAs (Ask Me Anything) to promote brands, events or products on the site’s front page. This ad type, which usually features a celebrity brand representative or company executive, currently run agencies between $100,000 to $200,000 for a month of promotion.
In addition to building its advertising network, Reddit has been actively rolling out a number of additional features, including a new redesign of its web platform. More recently, Reddit announced that it will be launching the beta of its ‘News tab’ feature exclusively for its iOS app.
The News tab, which is described as the “easiest place to find news shared by communities across Reddit,” works to pull news article content from a variety of subreddits and displays the articles in a single page format.
Reddit has not commented on or confirmed the validity of the reports.