Reddit, the social blogging site, could be doubling its advertising revenue by 2021 to $261.7 million, according to a forecast by eMarketer.
In 2019, the company’s ad revenue business is projected to grow 55% to $119 million, up from $76.9 million in 2018.
The increase represents a 0.1% share of the US digital ad market rising to 0.2% in 2021.
The company has been focused on making changes to its ad offers in 2018, including the launch new advertising formats such as in-stream videos, app install ads and ‘Top Post Takeover’. The latter lets brands take over the front page of the site.
The majority of Reddit’s revenues are coming from desktop devices. The company didn’t launch its mobile app until 2016, but in 2019 mobile will account for 57% of its ad revenues.
“As a mix of forum and trending news site with a bit of social network, reddit has operated on an ‘open internet’ ethos,” explained Monica Peart, forecasting director at eMarketer. “While that has yielded organic growth among a hard-to-reach audience, it has also meant a reality where controversial content is the norm. And in a news climate where missteps can tarnish results, that makes some digital advertisers nervous.”
Meanwhile, user growth across the site is projected to slow to single digits this year. Roughly 26.4 million people in the US are using Reddit monthly. In addition, the blog serves a unique audience of viewers who do not use any other social platforms.