As part of the study, 1,000 social media users were surveyed for seven product groups - laptops, televisions, cars, refrigerators, credit cards, make-up and movie tickets. 47% are dissatisfied with Google and co. because they cannot find relevant, helpful answers when researching products.
Better recommendations
"As a result, many users are turning to Reddit for better, more context-specific recommendations," writes the provider, who is pleased that 71 percent of respondents say Reddit is the best social media platform to find quick and specific answers to their questions.
The study shows how important Reddit is in the purchasing process, from discovering products to making decisions. Ads on Reddit contribute to more conversations about brands. For every 1,000 ad views on Reddit, advertisers received around two organic posts with an average of 3,500 views.
The study also showed that 23 percent of recommendations on Reddit led to a "redirect". This means that users start to consider brands they hadn't considered before. These redirects usually occur when users ask for help, for example when they want advice on products that better suit their needs.
Expert:inside cut out
It almost goes without saying that Reddit considers the recommendations given on its homepage to be more trustworthy than many other forms of advice. Reportedly, 42 percent of social media users value Reddit recommendations more than other sources, including influencer-sponsored posts, brand advertisements and even some expert reviews.
However, Reddit admits that its recommendations rank behind expert review sites (17 percent) and consumer review sites (15 percent) in terms of influence. As a platform that promotes itself as a solution to consumer frustrations, Reddit is naturally interested in portraying its influence in a positive light. However, experts are of the opinion that Reddit's statements at least tend to be true. (pte/swi)
]]>Among other things, it reveals that Reddit was able to increase revenue and reduce losses last year.
Reddit allows users to join online groups according to their interests. In the past quarter, the platform had an average of 73.1 million users per day. Around half of these came from the USA. Registered US users spent an average of 25 to 30 minutes per day on Reddit, according to the report.
Many users exclusively on the platform
With a view to the advertising industry, the service emphasizes that many of them are also not found on other online services. Almost a third of US Reddit users are not active on Facebook, 73% are not on Snapchat and 53% are not on Elon Musk's Twitter successor X.
Reddit will also give some particularly active users the opportunity to buy shares in the IPO - which is unusual. Unlike many other investors, there will be no obligation for them to hold their shares for a certain period of time before selling them. In the current version of the IPO prospectus, there was no indication of what proportion of the shares available for sale will go to users.
Share allocation according to activity level
As far as the procedure is concerned, it is known that some users and moderators of Reddit's online groups will be offered the opportunity to participate in the IPO. The shares will then be allocated according to the so-called "karma" rating, which reflects the reputation and activity of users on the platform.
Reddit also noted in the usual risk warnings in the prospectus that user participation could lead to major price fluctuations after the IPO. Users on the platform formed the movement in 2021 that invested in shares of some of the companies questioned by Wall Street, such as the video game retail chain Gamestop, causing share prices to rise.
Reddit increased its turnover last year from 666.7 to 804 million dollars. The loss fell from 158.6 million dollars to 90.8 million dollars. Reddit did not initially provide any information on the targeted valuation or the volume of the share placement. According to information from the financial service Bloomberg, Reddit was recommended a valuation of around five billion dollars. (SDA)
]]>
In August, Reddit had achieved a valuation of around ten billion US dollars in a financing round. According to the Group, advertising revenues in the second quarter were around 100 million dollars - an increase of 300 percent on the same period last year.
Reddit claims to have more than 50 million users every day. They are divided into more than 100,000 online communities, known as subreddits, in which users come together according to their interests. Reddit relies on so-called moderators from the respective communities to oversee the platform. Because the company often holds back when it comes to regulating content, it has recently come under repeated criticism.
Reddit also caused a stir on the financial market recently, because amateur investors allied themselves against professional investors via the platform. The result was price turbulence that sent the shares of the retail chain Gamestop on a roller coaster ride. (SDA)
]]>