Reddit’s explosive, AI-fuelled growth opens new doors for advertisers globally
Reddit has reported a landmark Q2 2025, with total revenue up 78% year-over-year to $500 million, including a staggering 84% rise in ad revenue to $465 million. The company also turned a $10 million loss into an $89 million profit, with daily active users up 21% to 110.4 million.
Reddit’s distinctiveness in the social media landscape lies in its text-based, community-centric model, a refreshing alternative to image and video heavy platforms. Unlike other social networks, Reddit thrives on authentic, anonymous conversations, offering advertisers a unique and engaged user base across countless niche communities.
A major growth catalyst has been Reddit’s deepening partnership with AI and search. Since Google began prioritizing Reddit content in mid-2024, the platform has seen increasing visibility. CEO Steve Huffman highlighted Reddit's value to AI development, calling its community-generated knowledge “essential for training” AI systems. Internally, Reddit is pushing to become a search destination itself, with 70 million weekly users on its core search product and Reddit Answers, its AI-powered Q&A tool, expanding rapidly to 6 million weekly users.
Reddit’s monetization strategy is also evolving. New ad features like conversation, shopping and dynamic product ads aim to help brands engage with communities in contextually relevant ways. This supports the platform’s broader goal of delivering better performance marketing options rooted in user-driven insights.
International expansion is also accelerating, thanks to machine translation in 23 languages. As a result, non-US users now make up 54% of the total audience, up from 50% a year ago. However, monetization still skews heavily US-centric, with $408 million of revenue from the US, revealing a major growth opportunity abroad.
What this means for us
In Ireland, Reddit’s rapid AI-driven monetization signals an evolving opportunity. As a frontier for niche and community-based advertising, Reddit offers highly engaged audiences, particularly valuable for brands looking to target tech-savvy, discussion-driven demographics, with over a quarter of adults 18-34 in Ireland using Reddit monthly (TGI, 2025). Moreover, innovations such as Reddit Answers could reshape how Irish consumers seek product recommendations and insights, further blurring the lines between search and social, prompting businesses to consider Reddit as a complementary platform in their digital strategy, especially for sectors like entertainment, tech, and retail.
Read more here: https://www.warc.com/content/feed/reddit-ad-revenue-grows-84-in-q2-as-it-lays-out-search-ambitions/en-GB/10843