Search Monetization Timeline
Q: What's the plan and timeline for search monetization?
A: CEO Steven Huffman explained that improving on-platform search is a top investment focus for 2025. The goal is to modernize search with features like better autocomplete and enhanced results pages. This will help new users find their home on Reddit and assist core users. Monetization efforts will follow once the consumer product is stable, with no significant revenue expected in 2025 but opportunities thereafter.

Ad Revenue Growth Drivers
Q: What's driving the upside in ad revenue?
A: CFO Andrew Vollero and COO Jennifer Wong attributed revenue growth to a combination of go-to-market initiatives and ad stack improvements. Investments in vertical diversification led to over half of verticals growing more than 50% year-over-year, including media, entertainment, pharma, tech, and finance. Growth in mid- and lower-funnel objectives nearly doubled year-over-year due to better conversion volume. International revenue grew 69% year-over-year, particularly in EMEA.

ARPU Growth Pressure
Q: How is user growth affecting ARPU, and can ARPU grow faster?
A: Jennifer Wong noted they don't manage to ARPU, as it's an output of revenue, users, and user mix. The absolute level of monetization per user is low due to rapid user growth and geographic mix. They focus on delivering performance and increasing the value of Reddit users over time. There's headroom for ARPU growth as engagement increases, but they aim to grow both users and revenue without sacrificing one for the other.

Data Sales Potential
Q: What are the prospects for data sales growth?
A: CEO Steven Huffman indicated that while data sales are a nice-to-have business, it's still early days. They're in discussions with both large AI training customers and smaller firms interested in real-time access to Reddit data. Reddit's data is valuable, but the company is more focused on on-platform initiatives like ads and search.

2025 Ad Innovations
Q: Which ad products will drive growth in 2025?
A: Jennifer Wong outlined plans to continue building a full-funnel solution and enhance brand advertising with automation and optimizations. They aim to develop shopping capabilities in the lower funnel, requiring catalog ingestion and complex measurement. End-to-end automation is a focus, simplifying campaign setup and optimization for advertisers.

Market Outlook for 2025
Q: What's the early take on the ad market in 2025?
A: Jennifer Wong observed that signals indicate a stable market with some optimism. Brand advertising is healthy, with strength across all objectives. While it's still an efficiency-driven market with pressure to improve return on ad spend, there's healthy investment in both brand and performance advertising.

Use of Generative AI
Q: How is Reddit using generative AI in ad tech?
A: Jennifer Wong mentioned they launched a headline generator using generative AI, which creates Reddity headlines that improve ad performance. They acquired Memorable AI to optimize ad creatives using AI insights. Future plans include integrating these insights into their ad stack and automating creative adjustments based on performance data.

Scaling Performance Measurement
Q: What investments are needed to scale performance measurement?
A: Jennifer Wong stated key investments include widespread adoption of Conversions API (CAPI) for better measurement. Automation and simplicity are crucial to attract smaller advertisers, requiring end-to-end automated solutions. Building out shopping capabilities in the lower funnel is another focus, involving complex machine learning models and measurement.

Data Licensing Partnerships
Q: Are there opportunities for more data licensing partnerships?
A: Steven Huffman said they're open for business but require terms that respect users and work for Reddit. They're in talks with a small group of AI training firms and also exploring deals with marketing intelligence and financial services firms. The landscape is evolving, and while some deals are complex, they're cautious to ensure any agreement aligns with their business and user interests.

Monetizing Conversation Placements
Q: How significant is the opportunity in conversation placements?
A: Jennifer Wong noted that ads in comments are being tested and represent a minority of inventory but are growing in engagement. There's headroom as they refine the consumer experience and ad formats for these high-intent pages. The focus is on designing appropriate ad formats rather than increasing ad load.

Pricing Headwinds from Conversation Ads
Q: Are conversation ads still impacting CPMs?
A: Jennifer Wong acknowledged that conversation placements have less demand compared to the feed, affecting CPMs. They are growing demand through strategies like multi-placement optimization, which helps advertisers optimize across different inventory types. The conversation page offers high intent and conversion opportunities, with more work to be done on ad formats.

Domestic Ad ARPU Increase
Q: What's driving the uptick in domestic ad ARPU?
A: Jennifer Wong explained that ARPU fluctuations are due to revenue growth and user mix. The recent uptick is driven by improved ad performance and delivering better return on ad spend for advertisers. Growth in mid- and lower-funnel objectives increases the value per impression, contributing to ARPU growth.

Go-to-Market Strategy for Data Licensing
Q: Can you update us on data licensing strategy?
A: Jennifer Wong stated they're engaging with both AI model trainers and marketing intelligence firms. For AI trainers, discussions focus on both the freshness and breadth of data. For marketing intelligence, efforts involve demonstrating the value of Reddit data to their end customers. The strategy is to help clients realize the insights and value Reddit data can provide.