Boosting International Audience: Reddit’s Plans for Translation and Expansion
In its first-ever earnings call, Reddit CEO Steve Huffman revealed the company’s focus on expanding its international audience. With the aim of increasing the proportion of non-U.S. users, Reddit is working on automatic translations of its content into French, using advanced language models. Huffman sees this as a significant opportunity, as currently only half of Reddit’s audience is based in the U.S., while its peers have a much higher percentage of non-U.S. users.
The translation effort is still in its testing phase but is receiving substantial resources. The translated content is also being indexed on Google results in the French language, driving more traffic to the site. Reddit plans to tackle Spanish next, further expanding its reach.
This move towards international growth aligns with Reddit’s recent positive performance. In the last quarter, Reddit experienced a 48% year-over-year increase in revenue, reaching $243 million, and a 37% growth in unique users, totaling 82.7 million. These figures include both logged-in and logged-out users, similar to Twitter’s previous audience counting method.
Developer Tools: A Surprising Turnaround
In a surprising turn of events, Reddit is now focusing on attracting developers by offering new tools. This shift in strategy is unexpected considering the company’s history with third-party client developers. In July 2023, Reddit faced backlash from developers over API changes, leading to the blackout of numerous subreddits in protest.
However, Reddit is now embracing a play-nice approach. Huffman mentioned plans for tools that would push the boundaries of what a subreddit can offer. Some ongoing experiments include live scores on sports subreddits and a live stock ticker on r/wallstreetbets, known for its involvement in the Gamestop stock saga. A few hundred developers are already testing these new experiences, and Reddit plans to include more developers from the waitlist in the coming months.
Licensing Data and Revenue Generation
Earlier this year, Reddit signed a deal with Google, allowing the search engine company to utilize Reddit’s data. Huffman confirmed that Reddit also plans to license data to other companies. While this move may raise concerns about user privacy, Huffman assured users that the company is being “considerate and selective” in choosing partners and the use of their data.
Reddit’s main focus right now is building infrastructure for revenue generation. Despite discontinuing its virtual currency efforts last year, Reddit plans to launch a revamped Gold product that allows users to spend and earn money on the platform. This represents an opportunity for Reddit to diversify its business model and further monetize its platform.
Conclusion
Reddit’s commitment to growing its international audience through automatic translations and its newfound focus on developer tools demonstrates its anticipation of the future. By expanding its reach beyond the U.S. and fostering a more developer-friendly environment, Reddit aims to strengthen its position as a leading social network.
Additionally, Reddit’s willingness to license data to other companies shows its understanding of the importance of strategic partnerships while being mindful of user privacy concerns. With plans to launch a revamped Gold product, Reddit is actively exploring new avenues for revenue generation and ensuring long-term sustainability.
Overall, these initiatives showcase Reddit’s commitment to innovation and adaptability, positioning itself for continued growth in an ever-evolving digital landscape.