Reddit tests search ads as traffic declines and growth worries rise
Reddit announced on Tuesday that it is testing new ad placements within its search results pages while facing concerns over declining user traffic.
New advertising test begins
The company stated that ads may appear based on contextual relevance to a user's specific search query. This initial rollout involves a select group of eligible advertisers who will participate in the evaluation process.
Examples of potential ads
Reddit suggested that searching for an espresso station could display advertisements for machines or coffee mugs. Similarly, a search for a home office setup might surface ads for monitors and desks.
Stock drops after earnings report
The company beat Wall Street estimates for revenue but its stock price fell following the third-quarter results release. Fourth-quarter guidance predicted sales between $1 billion and $1.03 billion, which was below the expected $1.05 billion.
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