Reddit adapts to AI shift with focus on logged-in users

Reddit is transitioning to a primarily logged-in experience as search traffic declines amid the rise of AI-powered search. The move aims to protect user data from AI scraping and secure lucrative licensing deals with model providers. In its Q3 earnings call, the company noted a 2% year-over-year drop in U.S. daily active users, which fell to 50.7 million, while global daily active users remained flat at 130.3 million. Reddit’s revenue rose 53% year-over-year to $895 million, with advertising revenue up 54% and non-advertising revenue, including AI data licensing, growing 3,5%. The company also reported a 53% increase in U.S. average revenue per daily active user to $13.82. Reddit’s CEO, Steve Huffman, acknowledged the shift as a significant change for the open web but emphasized it as necessary for the platform’s future. The transition will begin with tests in select markets in Q4, with no immediate timeline for a global rollout. Reddit will retain access to a logged-out front page and maintain incognito mode for anonymous browsing. The company highlighted the potential for increased monetization through better user targeting and personalized experiences, including its new 'For You' feed.