During a recent earnings call, Reddit CEO Steve Huffman characterised the platform’s users as either “Scrollers” or “Seekers.” Scrollers engage in community discussions about niche topics, while Seekers look for specific answers, often adding “Reddit” to their Google searches to find genuine insights and opinions.
To cater to this latter group, Reddit has introduced “Reddit Answers,” an AI-driven chatbot that pulls and summarises responses from existing posts on the platform. Huffman noted that up until now, Reddit hadn’t effectively addressed the needs of Seekers, who are seeking solutions rather than community engagement in their moment of need. Since its beta launch in December, Reddit Answers has attracted 1 million weekly active users and expanded its availability beyond the US to Australia, the UK, Canada, and India.
Currently functioning as a separate feature in the app, Reddit plans to integrate Answers more seamlessly into the platform by 2025, beginning with incorporating it into the primary search function. This would allow users to input full queries instead of just keywords. Huffman also mentioned the aspiration to use Answers as an entry point for new users, helping them discover the wealth of knowledge available on Reddit.
Another proposed enhancement is to link Answers with external search results, allowing users to easily access summarised content from Reddit without going through Google. This strategy aims to bolster Reddit’s visibility in search results, especially after experiencing fluctuations in user growth from a recent Google Search algorithm change.
Despite these challenges, Reddit’s stock saw an uptick after reporting stronger-than-expected financial results, with a revenue increase of 61% year-on-year to $392.4 million. The company also had over 108 million daily active users, representing a 31% increase from the previous year. For the upcoming quarter, Reddit anticipates revenue between $410 million and $430 million, expecting continued growth in its adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) as well.
Fanpage: TechArena.au
Watch more about AI – Artificial Intelligence
