Reddit aims to increase ad revenue by targeting international users and introducing an enhanced search function.
- A top company executive informed CNBC that Reddit is intensifying its efforts to draw in users from countries such as India and Brazil.
- Expansion into new markets could help Reddit unlock new advertising revenue internationally.
- New search tools on Reddit will make it easier for users to navigate the platform.
The company is intensifying its efforts to attract more users globally, with a focus on countries like India and Brazil, in order to seize new advertising opportunities, a top executive revealed to CNBC.
Jen Wong, Reddit's chief operating officer, stated in a comprehensive interview that other platforms have approximately 80% to 90% of their users located outside of the U.S., while roughly half of Reddit's current user base is situated internationally.
"Wong stated to CNBC that the future user growth opportunity for Reddit is significant outside of the US and local languages, as every language presents a new opportunity for the platform."
Reddit is now translating its site into different languages with the help of artificial intelligence.
By the end of the year, approximately 20 to 30 languages will be accessible, as stated by Wong.
India opportunity
The U.K., Philippines, India, and Brazil are among the company's fastest-growing markets in terms of users.
"India is experiencing rapid growth," Wong stated. "There is a significant opportunity to be found in India."
The COO of Reddit stated that India has a substantial population of English-speaking internet users, who are highly engaged in discussions about topics such as cricket and the Bollywood film industry.
Wong stated that Reddit has been engaging with "mods," who manage content on the platform's communities.
Advertising opportunity
Boosting ad revenue, Reddit's primary source of income, can be achieved through market growth, particularly in India.
Despite 50% of Reddit's users being located outside the U.S., only about 17% of its revenue comes from international markets, according to the company's third-quarter results.
Reddit initially targets international markets for cross-border advertising, such as when a European brand wants to advertise in the U.S. Once Reddit reaches about 10% of a country's internet population in that country, there is an opportunity to establish local advertising teams, like an Indian brand advertising to Indian users.
Wong stated that while it has not yet occurred in many markets, Reddit is closely monitoring the growth of its fastest expanding countries.
New search tools
The new search tools that Reddit is implementing aim to improve the difficulty of finding what users are looking for on the site.
In the third-quarter earnings call last month, CEO Steve Huffman stated that search on Reddit is a "focused investment" for 2025.
The company views its search feature as a tool to assist users in navigating the site and discovering related topics or posts.
Wong stated that landing on a post that appears to be a dead end is not uncommon, but there are often other posts like it in different communities. This presents an opportunity to gain a comprehensive understanding of what that post represents.
"We guide you through Reddit as you follow that line of thinking, considering it as an opportunity."
Wong refused to provide additional information, stating only, "We're testing various things."
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