Technology
Reddit Shifts Toward Logged-In Experience as AI Transforms Search
The online platform reported declining web traffic referrals as users increasingly rely on artificial intelligence summaries.
By Headlinne · Compiled from reporting by TechCrunch, Verge and Business Insider
Reddit announced plans to transition into a primarily logged-in experience to protect its data and boost revenue as artificial intelligence tools reduce traditional search engine referrals.
The company reported on Thursday that search traffic referrals fell by more than 1 million per week on average during October.
Global daily active users reached 130.3 million in the third quarter, remaining flat compared with the previous quarter.
However, United States daily active users dropped to 50.7 million in the third quarter, down from 53.2 million in the second quarter.
The shift away from open-web search traffic highlights a broader industry trend affecting publishers as automated summaries keep users from clicking through to websites.
Despite audience declines in its largest market, overall revenue grew 53 percent year-over-year to $895 million, surpassing expectations.
Net income rose 74 percent to $283 million, while advertising revenue increased 54 percent to $847 million.
Chief Executive Steve Huffman said during an earnings call that search modes do not help generate traffic for the platform.
"The reality is, AI Mode does not drive traffic," said Steve Huffman, the chief executive of Reddit.
"Not for us, and not to anybody, as far as I know. That's just a fundamental shift in how Google works."
Huffman also addressed the philosophical weight of moving away from the platform's open-web roots in a post on the site.
"I don't know about you, but as someone whose life has been defined by the open internet, it's a big change for me," Huffman wrote.
"But I've come to the conclusion that this is the right decision for our platform and the right decision for our business," he said.
The transition will not happen overnight, with the company planning to run tests in select markets outside the United States during the fourth quarter.
Reddit has not yet established a timeline for when the logged-in requirement will be implemented worldwide for all users.
Reporting from
- TechCrunchNot politically framed
As search traffic dries up, Reddit announces it’s shifting to a logged-in experience
- The VergeNot politically framed
Reddit’s CEO says Google’s AI Mode ‘does not drive traffic’
- Business InsiderNot politically framed
Reddit is going logged-in only. Blame Google AI Overviews.
How this article was made: Headlinne wrote it with AI from the 3 reports listed above. Direct quotes are checked word for word against those reports, every number appears in at least one of them, and no other sentence is copied from one. Photos are from those reports and credited to them. Each report’s page on Headlinne links to the outlet’s original.