How did Reddit's advertising revenue perform in 2024?

Reddit's advertising revenue experienced significant growth in 2024, driven by strong user engagement and innovative monetization strategies.

1. **Year-over-year Increase**: Reddit's advertising revenues increased by 56% year-over-year to $315.1 million. This substantial growth is a testament to the effectiveness of Reddit's advertising services and the platform's ability to attract and retain advertisers.
2. **User Growth Contribution**: The growth in advertising revenue can be attributed to increased impressions resulting from strong user growth. Daily Active Uniques (DAUq) jumped 47% year-over-year to 97.2 million, with U.S. DAUq increasing by 51% to 48.2 million, and International DAUq growing by 44% to 49 million. Similarly, Weekly Active Uniques (WAUq) rallied by 53% year-over-year to 365.4 million, with U.S. WAUq rising by 58% to 178 million, and International WAUq increasing by 48% to 187.4 million.
3. **Average Revenue Per User (ARPU) Growth**: The Average Revenue Per User (ARPU) moved up by 14% year-over-year to $3.58, with U.S. ARPU increasing by 12% to $5.88, and International ARPU climbing by 16% to $1.32. This indicates that both domestic and international users are contributing to the growth in advertising revenue.
4. **New Monetization Opportunities**: Reddit's foray into data licensing agreements with Alphabet's Google and OpenAI has led to a 547% year-over-year increase in other revenues, reaching $33.2 million. These agreements are expected to further boost revenue in the future, with analysts projecting that data licensing could become a $400 million to $500 million business for Reddit over time.

In summary, Reddit's advertising revenue performance in 2024 was robust, driven by user growth, increased ARPU, and new monetization opportunities. These factors are expected to continue supporting the company's revenue growth in the coming years.