Reddit’s ad revenue surge, YouTube’s AI presence and other top stats from July.
Artificial intelligence-powered search is rapidly changing consumers behavior. Instead of using search engines like Google as a jumping off point, users are able to get their questions answered without even clicking a link. The result? Referral traffic plummeting as much as 60% for publishers. As traditional search loses relevance, marketers are left to figure out how to stay visible in overviews.
User-generated content has proven to be a key source for AI models. Reddit and YouTube have stood out as the platforms favored by models such as Gemini, largely due to their crowdsourced and collaborative nature, which can build trust . If brands want to increase their chances of showing up in AI search, investing in high-quality and informative UGC is crucial.
However, the question of which platform to focus on remains. Should marketers throw their resources into Reddit, with its largely untapped audience but persistent brand safety concerns ? Or should they go with YouTube, one of the most widely-used social media platforms in the world, but one that is experiencing a shrinking growth rate and an increased focus on subscription-based offerings. Or is the answer a little bit of both?
Marketing Dive has compiled some numbers from July that marketers should be aware of as they look to navigate the rapidly changing environment of AI search.
Reddit’s ad revenue grew 64% year-over-year in Q2, beating out total revenue growth by three percentage points, the company reported at the end of July. The double-digit increase suggests advertisers are finding more value in the platform, which has 130.3 million global daily active users, an 18% YoY increase.
“In an increasingly automated web, the value of real human perspective has never been higher. Reddit’s commercial momentum reflects that,” said Steve Huffman, founder and CEO of Reddit in an earnings release . “Crossing $1 million in revenue per employee and maintaining eight consecutive quarters of over 60% revenue growth shows the strength of our community model and the value we deliver to advertisers.”
In 2024, Reddit entered into a partnership with Google, allowing the tech giant to train its AI on Reddit’s human-created posts. However, the $60 million-a-year deal may be ending, as Google’s AI search has tanked Reddit’s traffic . During an earnings call with investors , Huffman didn’t rule anything out, even going as far as to suggest other buyers may be interested in Reddit’s data.
“One of the things that we've seen over the last year is more and more people interested in Reddit's data for different use cases or at different scales. And so we do look at this as an expanding marketplace with lots of different opportunities,” Huffman said.
Reddit has been making considerable strides in terms of its advertising infrastructure in recent years. It has taken steps to monetize popular Reddit content formats, such as Ask Me Anythings . Kia recently put its own spin on the WNBA All-Star Weekend. During a livestream, WNBA player Chiney Ogwumike used a claw machine to answer preselected questions while shooting minibasket balls for charity. The stream generated 61,000 views and 354 upvotes in its first 72 hours on the platform.
The likelihood YouTube videos are to appear in Google AI overviews compared to search results
YouTube videos are much more likely to appear in AI overviews compared to traditional search results,…