The company says that its forums offer something that is difficult to find elsewhere: real conversations from real people. As reported by Business InsiderReddit has declared in his relationship of the second quarter that millions of users come already on the site every week looking for advice, and is now working to transform those visitors into regular research users.
Starting now, the integrated Reddit research has about 70 million weekly users. His tool fueled by artificial intelligence, Reddit Answers, has so far designed 6 million. The function allows people to type a question in a search bar, then use to to put together a summary of the on -site content, followed by a break with links to the Posts of Reddit as sources.
The setting is very close to the search results generated by the AI of Google, which also offer a quick overview with the connections below. In a recent test of Business InsiderBoth Reddit and replies that Google provided similar summaries when asked how to smoke a chest. Each including suggested methods with sources to support them. The key difference was that Google connections indicate a mix of external websites, including Reddit, while the Reddit tool connects only to its content.
During a call with investors, the Reddit CEO Steve Huffman said that the company plans to unite its two research products – its regular research and profit responses – in one. He explained that the responses to Reddit will become a “capacity” in the main research system rather than a separate function. COO Jen Wong has added that the company wishes to market the Reddit research tools more actively, hoping that users begin to think of Reddit as a reference place to find information.
Behind the scenes, Reddit’s recent push to research and the IA has been coupled with stronger financial services. The company recorded its most profitable quarter ever, with the revenue that exceeded 78% on an annual basis at $ 500 million. Net income has reached $ 89 million and the company includes higher numbers in the third quarter, projecting $ 535 million to $ 545 million revenue, well above the analysts’ forecasts.
Reddit became the public at the beginning of this year with an evaluation of $ 6.4 billion. Since then, he has reported a strong growth of users and revenues. The number of unique daily visitors increased by 21% to 110.4 million in the quarter which ended on June 30th. Daily users also increased by 27%, but a bigger jump has come to users who have not been carried out in the growth of 51%-the most of which land on Reddit through Google searches.
Some analysts are uncomfortable for this dependence on Google. Reddit has an agreement that allows Google to train its artificial intelligence using the Reddit content. In return, Reddit gets access to Google’s Vertex tools. But critics say that this configuration could return against. Redburn Atlantic analysts evaluated Reddit a “sale”, warning that too much of his traffic comes from people who do not attack. Users often come through research, read a post, so they leave. This type of traffic is more difficult to transform into advertising revenues.
“Much of Reddit’s growth is guided by people who have not made access,” wrote analysts from Redburn, stressing that these users tend to spend less time on the site and are more difficult to monetize. They also warned that recent Reddit traffic gains may have reached the peak – and that one day Google could stop sending all the traffic.
The CEO of Reddit, Steve Huffman, also recognized the trend. “People go to Google to get to Reddit,” he said. But if Reddit can transform the habit into long -term growth remains unclear.
(Photo of Brett Jordan)
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