New Platform Insights from WARC, which dug into Reddit specifically, found the platform has shown “remarkable year-on-year growth” as its global ad revenue is projected to reach $1.8 billion in 2025 (+49.6%) and grow to $2.5 billion by 2026 (+39.0%).

However, despite a global ad reach of 606m the research also found that its $1.2 billion in annual ad revenue in 2024 accounted for only 0.4% of the total social media advertising expenditure, meaning it still has to compete for social advertising revenue.

According to WARC research, it has “strategically leveraged AI across its business” to attract advertisers, such as Reddit Answers.

Celeste Huang, media insights analyst at WARC Media, and author of the report, said: “Reddit’s ad business is currently relatively small, but its impressive ad spend growth, its increasing reach, which now surpasses X, and its investment in AI is catching the attention of a wider pool of advertisers.”