Reddit may make $119 million in ad revenue in 2019.
The popular online social platform is also on its way to more than double its ad revenues by 2021, according to market analysis firm eMarketer's forecasts.
"As a mix of forum and trending news site with a bit of social network, Reddit has operated on an 'open internet' ethos," Monica Peart, director of eMarketer forecasting, said in a statement. "Reddit's users are tech savvy and highly engaged, making them attractive to advertisers."
Reddit has recently attempted to shake things up to increase user engagement on the site. The platform redesigned its platform and rolled out a load bearing test in April. Reddit's mascot Snoo looked different and users could view the site using card, classic or compact mode. In February, the platform started experimenting with tipping users, which allows users to tip someone whose posts are popular.
Analysts forecast that Reddit will reach $119 million in net US ad revenue this year, with 57 percent of that revenue coming from mobile. In the US, 26.4 million people use Reddit at least once a month, though the platform's user growth rate could slow down to single percentage digits starting this year, analysts warn. They also said some advertisers may be worried about the content on Reddit's platform.
"While that has yielded organic growth among a hard-to-reach audience, it has also meant a reality where controversial content is the norm," Peart said. "And in a news climate where missteps can tarnish results, that makes some digital advertisers nervous."
"We've been working with eMarketer to help accurately caveat that their methodology only includes logged-in users, doesn't include Reddit's other sources of revenue and only considers our U.S.-based business, as we have not yet internationalized," said a Reddit spokesperson in an email statement. "While we can't confirm the projections, the report demonstrates a massive runway for growth."
First published on March 27, 3:00 a.m. PT.
Updates, 8:05 a.m. PT: Adds Reddit spokesperson statement.