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Reddit users are the least valuable of any social network

By CNBC

At its latest valuation of $3 billion, Reddit's 330 million monthly active users are valued much lower than those on other social networksRead full story

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  • The math doesn’t add up to me because I think “value” isn’t being defined relevantly. To anyone who’s ever tried to build a community of die-hard engaged users who care and come back day after day to leave real thoughts about anything, what Reddit has is gold. They’re sitting on it, now they have to figure out how to dig.

  • Reddit has the lowest ARPU —Twitter ARPU: ~$9.48; Facebook: $7.37...Reddit: ~$0.30.

    But Reddit's value is in the advertising revenue it has yet to monetize. One is that half its MAUs are 18-24. The other it has yet to target its vibrant Subreddit community, which are bespoke, highly passionate and informative. Rooting for Reddit!

  • And Redditors are proud of it too!

    “I ignore ads on all of them but Reddit is my favorite place to ignore ads.” https://www.reddit.com/r/technology/comments/apmwiv/reddit_users_are_the_least_valuable_of_any_social/?st=JS1TTLH6&sh=2ad40ec8

  • Reddit, a dilapidated neighborhood trying to ward off gentrification.

  • Monetary valuation is one thing, but Reddit holds other interesting valuable qualities that must be considered.

    Unlike perhaps any other platform, Reddit has incredibly invested users. If you’re in any way involved with the creation of original content - staying on the proper side of Reddit’s strict self promotion guidelines - one will never receive more brutally honest and highly interested insights to their work in notable volume. It’s not for the faint of heart. Yet it definitely demonstrates

    Monetary valuation is one thing, but Reddit holds other interesting valuable qualities that must be considered.

    Unlike perhaps any other platform, Reddit has incredibly invested users. If you’re in any way involved with the creation of original content - staying on the proper side of Reddit’s strict self promotion guidelines - one will never receive more brutally honest and highly interested insights to their work in notable volume. It’s not for the faint of heart. Yet it definitely demonstrates, save some of the more unsavory behavior, the kind of activity most platforms would give an arm or a leg to possess.

    I cannot be sure how Reddit can truly integrate advertising that doesn’t violate their users sensibilities. Though I have yet see a platform where their users remain so personally affronted by any change in their experience.

  • While I can see financially how this may be true, Reddit is leagues above the others when it comes to information. I hope some financial value can come from that.

  • “With 330 million monthly active users and revenue of about $100 million, according to sources, the company is generating an estimated $0.30 per user.”

    I mean if that’s how you measure value.

  • “The company said half of its MAUs are between the ages of 18 and 24.”

    This above is the real issue for Reddit because in that age range, people tend to have no money at all. The Millennials and the Gen Z are the poorest generations of our time, which is why Reddit has that horrible $0.30 ARPU value.

    Speaking about that, why isn’t Linkedin on that list? That data would be much more interesting.

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  • Ha. Yeah, let the sheep continue to be advertised to on other social media networks.

  • Ok, not a regular Reddit user, but when did it become a company and doesn't that go against everything Reddit stands for? I will give Reddit users credit for being the fastest at digging through information to find the truth. When a complicated story breaks, you can usually find details and background info the soonest on Reddit. Nothing like crowd-casting to plum the depths of a topic fast. News flash: Reddit users can't be monetized - yeah, everyone knows that. They aren't on Reddit to see ads and

    Ok, not a regular Reddit user, but when did it become a company and doesn't that go against everything Reddit stands for? I will give Reddit users credit for being the fastest at digging through information to find the truth. When a complicated story breaks, you can usually find details and background info the soonest on Reddit. Nothing like crowd-casting to plum the depths of a topic fast. News flash: Reddit users can't be monetized - yeah, everyone knows that. They aren't on Reddit to see ads and they aren't there to shop. I suppose that means there is a lot of upside potential, but I think we would all be at a loss if Reddit became just another social app.

  • For me, Reddit is far more appealing than that cesspool that is Facebook.

  • “Valuable users” this is the kind of crazy dystopian language we’ve normalised. Too many crazy technology companies have traded on being valueless for too long. Facebook selling ads is just one snake oil salesman selling snake oil to another snake oil salesman.

  • I wonder if the anonymous nature of Reddit has anything to do with it. Reddit enables users to explore all of their interests, no matter how weird, freaky or unconventional they may be. Perhaps users simply don’t want those interests to spill over to the rest of their life. Put another way: what happens on Reddit, stays on Reddit.

  • 2000/2001 redux? Isn’t this yet another sign of excess and peak valuation. 30x revenue seems excessive - although we don’t have the growth rate. Perhaps investors believe there is pricing power given the low base users are currently being monetized at? I’m not so sure. The demographics are interesting but eventually the users will “graduate” as Reddit may not be enough to hold users captive to its network. The larger issue remains these crazy valuations in venture - will be the day of reckoning be

    2000/2001 redux? Isn’t this yet another sign of excess and peak valuation. 30x revenue seems excessive - although we don’t have the growth rate. Perhaps investors believe there is pricing power given the low base users are currently being monetized at? I’m not so sure. The demographics are interesting but eventually the users will “graduate” as Reddit may not be enough to hold users captive to its network. The larger issue remains these crazy valuations in venture - will be the day of reckoning be when many of the unicorns are public and then find their valuation halved once equity investors are the shareholder base? In that case, the average American loses as he/she buys the hype off an IPO.

  • Because they actively resist turning the site into a marketing garbage pile.

    Losing the support of reddit's user base is not something the owners can afford, as shown by the reaction to the Tencent investment

  • One-driven South African, Canadian, American ... Which one iz he? All of the above?

  • All that I can *ad* to this topic is that I CANNOT STAND ADS!! GO REDDIT!!!!! does Facebook REALLY need to have ads? Isn't that like a HUGE waste of money that could go for something to better our world?

  • Kind of amazing given how rich the community is in information and entertainment. I’m a paying supporter ... too many ads for my frequency of use especially via mobile.

  • r/TIL

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