{"id":85284,"date":"2025-02-13T06:26:15","date_gmt":"2025-02-13T06:26:15","guid":{"rendered":"https:\/\/peraltafinancing.com\/advertising\/ai-licensing-deals-now-account-for-10-of-reddits-revenue\/"},"modified":"2025-02-13T06:26:15","modified_gmt":"2025-02-13T06:26:15","slug":"ai-licensing-deals-now-account-for-10-of-reddits-revenue","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=85284","title":{"rendered":"AI Licensing Deals Now Account for 10% of Reddit’s Revenue"},"content":{"rendered":"


\n<\/p>\n

\n

Content licensing agreements now account for about 10% of Reddit\u2019s total revenue, the company\u2019s CRO Jen Wong told ADWEEK in an exclusive interview Wednesday.\u00a0<\/p>\n

\u201cIt\u2019s a small part of our revenue\u2014I\u2019ll call it 10%. For a business of our size, that\u2019s material, because it\u2019s valuable revenue,\u201d Wong said.\u00a0<\/p>\n

The social platform\u2014which on Wednesday reported a 71% year-over-year lift in fourth-quarter revenue\u2014has been \u201cvery thoughtful\u201d about the AI developers it chooses to work with, Wong said. To date, the company has inked two content licensing deals: one with Google for a reported $60 million, and one with ChatGPT parent OpenAI.\u00a0<\/p>\n

Reddit has elected to work only with partners who can agree to \u201cspecific terms \u2026 that are really important to us.\u201d These terms include user privacy protections and conditions regarding \u201chow [Reddit is] represented,\u201d Wong said.\u00a0<\/p>\n

While licensing agreements with AI firms offer a valuable business opportunity for Reddit, advertising remains the company\u2019s core revenue driver.\u00a0<\/p>\n

Much of Reddit\u2019s $427.7 million Q4 revenues were generated by the ongoing expansion of its advertising business. And its ad revenue as a whole grew 60% YoY, underscoring the platform\u2019s growing appeal to brands.\u00a0<\/p>\n

The company, which IPOed last March, has focused on expanding its ads business. In January it debuted AMA Ads and Pro Trends to woo mainstream brands. AMA Ads lets brands host Q&A sessions with built-in RSVP and reminder features, while Pro Trends enables businesses to monitor brand mentions and viral discussions on Reddit.\u00a0<\/p>\n

Reddit has also invested significant resources into machine learning and AI to enhance ad targeting and user engagement. It acquired Memorable AI in August, a startup that predicts user engagement with ad creative, to bolster ad effectiveness on Reddit.\u00a0<\/p>\n

The efforts are paying off. The company has doubled its click volume and its conversion volume YoY and recorded significant growth across channels, geographical regions, and verticals in 2024.\u00a0A particular bright spot has been small- to medium-sized advertisers, which drove \u201coutsized growth\u201d during Q4, according to Wong.<\/p>\n

Reddit is focused on logged-in users, and more automation<\/strong><\/h4>\n

Helping to accelerate ad revenue growth is Reddit\u2019s rising traffic. While Reddit\u2019s Q4 user growth came in under Wall Street projections, causing shares to dip, its weekly active uniques grew 42% YoY to over 379 million visitors. Average revenue per unique visitor was $4.21 during the quarter, up 23% from the prior year.\u00a0<\/p>\n

While Google is \u201cnicely reinforcing\u201d Reddit\u2019s growth in traffic, Wong said, she added that the site\u2019s logged-in users, which have grown 27% year-over-year, are \u201cthe bedrock of our business.\u201d <\/p>\n

In the coming months, Reddit plans to expand its own machine learning and AI capabilities\u2014efforts that Wong believes will help sustain its ads business growth. <\/p>\n

\u201cWe\u2019re exploring end-to-end automation, especially for performance objectives, that just make it easier to activate on our advertising platform,\u201d she said.<\/p>\n

<\/p>\n

The company is also looking to refine its proprietary tools with the integration of more data signals, or \u201ccommunity intelligence,\u201d as Wong put it. \u201cIt\u2019s the corpus of data and thoughts and insights and conversation on our platform that allows [media] planners to strategize where they might find potential customers.\u201d<\/p>\n

For the full year, Reddit brought in $1.3 billion in revenue, up 62% YoY, with ad sales contributing $1.2 billion\u2014a 50% leap from 2023.\u00a0The company\u2019s non-U.S. revenue jumped 76% in Q4 and 55% for the full year.\u00a0<\/p>\n

However, Reddit still has a lot of work to do to hit profitability. It reported $71 million in net income for Q4, reversing a more modest $18.5 million profit in the prior year, and its full-year net loss deepened to $484.3 million, compared with $90.8 million in 2023. <\/p>\n

\n
\n
\n

\"Reddit
<\/a> <\/div>\n<\/section>\n<\/div><\/div>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"

Content licensing agreements now account for about 10% of Reddit\u2019s total revenue, the company\u2019s CRO Jen Wong told ADWEEK in an exclusive interview Wednesday.\u00a0 \u201cIt\u2019s a small part of our revenue\u2014I\u2019ll call it 10%. For a business of our size, that\u2019s material, because it\u2019s valuable revenue,\u201d Wong said.\u00a0 The social platform\u2014which on Wednesday reported a […]<\/p>\n","protected":false},"author":1,"featured_media":85285,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12023],"tags":[3825,2211,42082,10961,16104,42083,3461],"dealstore":[],"offerexpiration":[],"class_list":["post-85284","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-advertising","tag-account","tag-deals","tag-earnings-reports","tag-general","tag-licensing","tag-reddits","tag-revenue"],"yoast_head":"\nAI Licensing Deals Now Account for 10% of Reddit's Revenue - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=85284\" \/>\n<link rel=\"next\" href=\"https:\/\/fivemor.com\/?p=85284&page=2\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"AI Licensing Deals Now Account for 10% of Reddit's Revenue - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"Content licensing agreements now account for about 10% of Reddit\u2019s total revenue, the company\u2019s CRO Jen Wong told ADWEEK in an exclusive interview Wednesday.\u00a0 \u201cIt\u2019s a small part of our revenue\u2014I\u2019ll call it 10%. For a business of our size, that\u2019s material, because it\u2019s valuable revenue,\u201d Wong said.\u00a0 The social platform\u2014which on Wednesday reported a […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/fivemor.com\/?p=85284\" \/>\n<meta property=\"og:site_name\" content=\"Som2ny Network\" \/>\n<meta property=\"article:published_time\" content=\"2025-02-13T06:26:15+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/02\/Hero-6.png\" \/>\n\t<meta property=\"og:image:width\" content=\"600\" \/>\n\t<meta property=\"og:image:height\" content=\"315\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/fivemor.com\/?p=85284#article\",\"isPartOf\":{\"@id\":\"https:\/\/fivemor.com\/?p=85284\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\/\/fivemor.com\/#\/schema\/person\/b85e3c3dc0e1daea076524dc8810c371\"},\"headline\":\"AI Licensing Deals Now Account for 10% of Reddit’s Revenue\",\"datePublished\":\"2025-02-13T06:26:15+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/fivemor.com\/?p=85284\"},\"wordCount\":613,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/fivemor.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/fivemor.com\/?p=85284#primaryimage\"},\"thumbnailUrl\":\"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/02\/Hero-6.png\",\"keywords\":[\"Account\",\"Deals\",\"Earnings Reports\",\"General\",\"Licensing\",\"Reddits\",\"Revenue\"],\"articleSection\":[\"Advertising\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/fivemor.com\/?p=85284#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/fivemor.com\/?p=85284\",\"url\":\"https:\/\/fivemor.com\/?p=85284\",\"name\":\"AI Licensing Deals Now Account for 10% of Reddit's Revenue - Som2ny Network\",\"isPartOf\":{\"@id\":\"https:\/\/fivemor.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/fivemor.com\/?p=85284#primaryimage\"},\"image\":{\"@id\":\"https:\/\/fivemor.com\/?p=85284#primaryimage\"},\"thumbnailUrl\":\"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/02\/Hero-6.png\",\"datePublished\":\"2025-02-13T06:26:15+00:00\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/fivemor.com\/?p=85284\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/fivemor.com\/?p=85284#primaryimage\",\"url\":\"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/02\/Hero-6.png\",\"contentUrl\":\"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/02\/Hero-6.png\",\"width\":600,\"height\":315},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/fivemor.com\/#website\",\"url\":\"https:\/\/fivemor.com\/\",\"name\":\"Som2ny Network\",\"description\":\"Daily Deals\",\"publisher\":{\"@id\":\"https:\/\/fivemor.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/fivemor.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/fivemor.com\/#organization\",\"name\":\"Som2ny Network\",\"url\":\"https:\/\/fivemor.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/fivemor.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/fivemor.com\/wp-content\/uploads\/2026\/07\/4a0953c4-logo-300x86-1.png\",\"contentUrl\":\"https:\/\/fivemor.com\/wp-content\/uploads\/2026\/07\/4a0953c4-logo-300x86-1.png\",\"width\":300,\"height\":86,\"caption\":\"Som2ny Network\"},\"image\":{\"@id\":\"https:\/\/fivemor.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/fivemor.com\/#\/schema\/person\/b85e3c3dc0e1daea076524dc8810c371\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/fivemor.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/729ae85bf62b9917e93538db2f2688ca?s=96&r=g&default=https%3A%2F%2Ffivemor.com%2Fwp-content%2Fplugins%2Fbuddypress-first-letter-avatar%2Fimages%2Fdefault%2F96%2Flatin_a.png\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/729ae85bf62b9917e93538db2f2688ca?s=96&r=g&default=https%3A%2F%2Ffivemor.com%2Fwp-content%2Fplugins%2Fbuddypress-first-letter-avatar%2Fimages%2Fdefault%2F96%2Flatin_a.png\",\"caption\":\"admin\"},\"sameAs\":[\"https:\/\/fivemor.com\"],\"url\":\"https:\/\/fivemor.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"AI Licensing Deals Now Account for 10% of Reddit's Revenue - Som2ny Network","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/fivemor.com\/?p=85284","next":"https:\/\/fivemor.com\/?p=85284&page=2","og_locale":"en_US","og_type":"article","og_title":"AI Licensing Deals Now Account for 10% of Reddit's Revenue - Som2ny Network","og_description":"Content licensing agreements now account for about 10% of Reddit\u2019s total revenue, the company\u2019s CRO Jen Wong told ADWEEK in an exclusive interview Wednesday.\u00a0 \u201cIt\u2019s a small part of our revenue\u2014I\u2019ll call it 10%. For a business of our size, that\u2019s material, because it\u2019s valuable revenue,\u201d Wong said.\u00a0 The social platform\u2014which on Wednesday reported a […]","og_url":"https:\/\/fivemor.com\/?p=85284","og_site_name":"Som2ny Network","article_published_time":"2025-02-13T06:26:15+00:00","og_image":[{"width":600,"height":315,"url":"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/02\/Hero-6.png","type":"image\/png"}],"author":"admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"admin","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/fivemor.com\/?p=85284#article","isPartOf":{"@id":"https:\/\/fivemor.com\/?p=85284"},"author":{"name":"admin","@id":"https:\/\/fivemor.com\/#\/schema\/person\/b85e3c3dc0e1daea076524dc8810c371"},"headline":"AI Licensing Deals Now Account for 10% of Reddit’s Revenue","datePublished":"2025-02-13T06:26:15+00:00","mainEntityOfPage":{"@id":"https:\/\/fivemor.com\/?p=85284"},"wordCount":613,"commentCount":0,"publisher":{"@id":"https:\/\/fivemor.com\/#organization"},"image":{"@id":"https:\/\/fivemor.com\/?p=85284#primaryimage"},"thumbnailUrl":"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/02\/Hero-6.png","keywords":["Account","Deals","Earnings Reports","General","Licensing","Reddits","Revenue"],"articleSection":["Advertising"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/fivemor.com\/?p=85284#respond"]}]},{"@type":"WebPage","@id":"https:\/\/fivemor.com\/?p=85284","url":"https:\/\/fivemor.com\/?p=85284","name":"AI Licensing Deals Now Account for 10% of Reddit's Revenue - Som2ny Network","isPartOf":{"@id":"https:\/\/fivemor.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/fivemor.com\/?p=85284#primaryimage"},"image":{"@id":"https:\/\/fivemor.com\/?p=85284#primaryimage"},"thumbnailUrl":"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/02\/Hero-6.png","datePublished":"2025-02-13T06:26:15+00:00","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/fivemor.com\/?p=85284"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/fivemor.com\/?p=85284#primaryimage","url":"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/02\/Hero-6.png","contentUrl":"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/02\/Hero-6.png","width":600,"height":315},{"@type":"WebSite","@id":"https:\/\/fivemor.com\/#website","url":"https:\/\/fivemor.com\/","name":"Som2ny Network","description":"Daily Deals","publisher":{"@id":"https:\/\/fivemor.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/fivemor.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/fivemor.com\/#organization","name":"Som2ny Network","url":"https:\/\/fivemor.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/fivemor.com\/#\/schema\/logo\/image\/","url":"https:\/\/fivemor.com\/wp-content\/uploads\/2026\/07\/4a0953c4-logo-300x86-1.png","contentUrl":"https:\/\/fivemor.com\/wp-content\/uploads\/2026\/07\/4a0953c4-logo-300x86-1.png","width":300,"height":86,"caption":"Som2ny Network"},"image":{"@id":"https:\/\/fivemor.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/fivemor.com\/#\/schema\/person\/b85e3c3dc0e1daea076524dc8810c371","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/fivemor.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/729ae85bf62b9917e93538db2f2688ca?s=96&r=g&default=https%3A%2F%2Ffivemor.com%2Fwp-content%2Fplugins%2Fbuddypress-first-letter-avatar%2Fimages%2Fdefault%2F96%2Flatin_a.png","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/729ae85bf62b9917e93538db2f2688ca?s=96&r=g&default=https%3A%2F%2Ffivemor.com%2Fwp-content%2Fplugins%2Fbuddypress-first-letter-avatar%2Fimages%2Fdefault%2F96%2Flatin_a.png","caption":"admin"},"sameAs":["https:\/\/fivemor.com"],"url":"https:\/\/fivemor.com\/?author=1"}]}},"_links":{"self":[{"href":"https:\/\/fivemor.com\/index.php?rest_route=\/wp\/v2\/posts\/85284","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fivemor.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fivemor.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fivemor.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/fivemor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=85284"}],"version-history":[{"count":0,"href":"https:\/\/fivemor.com\/index.php?rest_route=\/wp\/v2\/posts\/85284\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fivemor.com\/index.php?rest_route=\/wp\/v2\/media\/85285"}],"wp:attachment":[{"href":"https:\/\/fivemor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=85284"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fivemor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=85284"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fivemor.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=85284"},{"taxonomy":"dealstore","embeddable":true,"href":"https:\/\/fivemor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fdealstore&post=85284"},{"taxonomy":"offerexpiration","embeddable":true,"href":"https:\/\/fivemor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fofferexpiration&post=85284"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}