Hmm, interesting. Daily users definitely makes them look a lot worse overall, because the monthly number they were giving before (430M) put them almost equal to Twitter, while this is less than...
Hmm, interesting. Daily users definitely makes them look a lot worse overall, because the monthly number they were giving before (430M) put them almost equal to Twitter, while this is less than 30% of Twitter's daily count. On the other hand, having a lower user number can make other metrics like ad-revenue-per-user look better. A lot of big advertisers also advertise across all the major platforms, so it probably didn't look great to claim similar size to Twitter but deliver way fewer clicks/views on ads.
The source article in the Wall Street Journal has a fair amount more info (but is paywalled). They're claiming pretty significant ad-revenue growth, but being a little tricky by restricting that to direct ad revenue and not including all of the programmatic advertising they have now. This is an interesting statement too, I'm not sure if this is just talking about ad-sales offices or something more significant:
Reddit announced an operations team in London in September, and will seek to open offices in three to five countries every year, initially targeting countries in Europe, the Middle East and Africa, she added.
I have no idea what companies desire when they're in the ad business on social media sites like reddit, facebook, snapchat or tiktok. If I were to buy an ad, I'd want to know how many unique...
I have no idea what companies desire when they're in the ad business on social media sites like reddit, facebook, snapchat or tiktok.
If I were to buy an ad, I'd want to know how many unique people I reach through my campaign and how many people I'm reaching like more than 10 times or whatever where additional eyeballs are certainly worth nothing.
If that's how the ads business works for large companies, the weekly or monthly numbers would be more interesting right?
But I'd assume if you're advertising for branding, not to move specific products then and there, but more long-term, you'd want to have eyeballs regularly in a short amount of time to build brand.
I hardly ever see rebate codes on reddit, (which is how you build metrics for what sales volume a specific ad campaign pushes), so I'd assume it's more for branding?
Modern sites that try to sell merchandise in my region generally always want top-page ads (think burger chains, stores, books, CDs, everything you can get coupons for).
Companies that run brand-campaigns generally always seem to want video ads (youtube, twitch, tv news, etc.), which to me leaves reddit in a strange position.
Opening different offices and the reason WSJ look at direct ad revenue, is that programmatic advertising is so little per pageview that it won't ever pay for costs. Targeted direct sales go for many times the number.
A local keyword search for the word for unsecured loans "forbrukslån" in Norwegian, generally pays google in the $75-100 per click-range. It's been that way for years (12)
You make those types of sales by having local offices that work with the biggest clients in the ad-space: banks, energy companies, phone companies, entertainment, supermarkets, chains. Those are interactions with expert sales teams on both sides of the table.
Is that the market reddit wants to compete in? If so, they've really got their work cut out for them.
Yeah, I'd imagine the desire for video ads is one of the major reasons that Reddit set up their own video-hosting (v.redd.it), as well as the continued push into live-streaming with their RPAN...
Yeah, I'd imagine the desire for video ads is one of the major reasons that Reddit set up their own video-hosting (v.redd.it), as well as the continued push into live-streaming with their RPAN service. They can sell video ads on both of those, and I believe they're also putting autoplaying video ads interspersed with posts on the feed in their apps (and possibly the redesign).
And yes, they do seem to be trying to get into larger direct-sales. They've been hiring a ton of people related to sales and advertising, to the point that I think that could be the majority of their employees now. A huge part of their job listings are related to it, both under the "Marketing" and "Sales" sections and others. The WSJ article also says:
The company also aims for its sales force to employ around 300 people world-wide by the end of 2020, with plans to grow head count by 75% over the next year, Ms. Wong said.
So they must already have ~170 employees in sales, with those numbers.
Hmm, interesting. Daily users definitely makes them look a lot worse overall, because the monthly number they were giving before (430M) put them almost equal to Twitter, while this is less than 30% of Twitter's daily count. On the other hand, having a lower user number can make other metrics like ad-revenue-per-user look better. A lot of big advertisers also advertise across all the major platforms, so it probably didn't look great to claim similar size to Twitter but deliver way fewer clicks/views on ads.
The source article in the Wall Street Journal has a fair amount more info (but is paywalled). They're claiming pretty significant ad-revenue growth, but being a little tricky by restricting that to direct ad revenue and not including all of the programmatic advertising they have now. This is an interesting statement too, I'm not sure if this is just talking about ad-sales offices or something more significant:
I have no idea what companies desire when they're in the ad business on social media sites like reddit, facebook, snapchat or tiktok.
If I were to buy an ad, I'd want to know how many unique people I reach through my campaign and how many people I'm reaching like more than 10 times or whatever where additional eyeballs are certainly worth nothing.
If that's how the ads business works for large companies, the weekly or monthly numbers would be more interesting right?
But I'd assume if you're advertising for branding, not to move specific products then and there, but more long-term, you'd want to have eyeballs regularly in a short amount of time to build brand.
I hardly ever see rebate codes on reddit, (which is how you build metrics for what sales volume a specific ad campaign pushes), so I'd assume it's more for branding?
Modern sites that try to sell merchandise in my region generally always want top-page ads (think burger chains, stores, books, CDs, everything you can get coupons for).
Companies that run brand-campaigns generally always seem to want video ads (youtube, twitch, tv news, etc.), which to me leaves reddit in a strange position.
Opening different offices and the reason WSJ look at direct ad revenue, is that programmatic advertising is so little per pageview that it won't ever pay for costs. Targeted direct sales go for many times the number.
A local keyword search for the word for unsecured loans "forbrukslån" in Norwegian, generally pays google in the $75-100 per click-range. It's been that way for years (1 2)
You make those types of sales by having local offices that work with the biggest clients in the ad-space: banks, energy companies, phone companies, entertainment, supermarkets, chains. Those are interactions with expert sales teams on both sides of the table.
Is that the market reddit wants to compete in? If so, they've really got their work cut out for them.
Yeah, I'd imagine the desire for video ads is one of the major reasons that Reddit set up their own video-hosting (v.redd.it), as well as the continued push into live-streaming with their RPAN service. They can sell video ads on both of those, and I believe they're also putting autoplaying video ads interspersed with posts on the feed in their apps (and possibly the redesign).
And yes, they do seem to be trying to get into larger direct-sales. They've been hiring a ton of people related to sales and advertising, to the point that I think that could be the majority of their employees now. A huge part of their job listings are related to it, both under the "Marketing" and "Sales" sections and others. The WSJ article also says:
So they must already have ~170 employees in sales, with those numbers.