Reddit has announced that it has raised more than $250 million in Series E funding, which it will look to use to fuel the next stage of the platform's development.
Now with more than 430 million users, Reddit is eyeing expansion, and it's planning to invest in new ad products and video improvements, among other elements, to advance the platform.
As explained by Reddit:
"We've come a long way in recent years to focus more on the needs of the hundreds of thousands of communities that make up Reddit and on creating feature-rich, safe, engaging, spaces for meaningful conversations for our 50+ million daily users. We've also continued to scale our Advertising business, which is now poised to deliver performance and engagement in addition to brand awareness. Advertisers have responded favorably to our efforts and the authenticity of community on Reddit, with direct advertising revenue increasing 90% in the last quarter, year-over-year."
Reddit has made its ad business a much bigger focus in recent years, going from a more controversial, free-speech aligned corner of the web, to one that has clearer parameters around what's acceptable, and what it will tolerate in the best interests of its community.
Reddit's biggest move on this front came in June last year, when it announced a significant update to its policies around hate speech, which resulted in the removal of thousands of the most controversial subreddits. The change was in line with rising user expectation, while it also helped Reddit improve the brand safety of the platform, and attract more business interest as a result.
Reddit says that its latest funding will be used to improve its video, advertising and consumer products, as well as its expansion into international markets.
"We're also readying to double the number of Reddit employees this year; it’s surprising not only for the pace of growth but also that such a relatively lean team has been behind one of the most visited websites in the world. We are confident in our mission to provide community and belonging to everyone and are well-positioned for the growth we have planned."
Despite its audience reach and presence, Reddit still hasn't become a key consideration for marketers, but this new funding could help to take the platform to the next level, and provide more appealing ad options to attract different types of businesses.
If you haven't considered Reddit for your digital marketing efforts in the past, it may well be worth spending some time in the app, and getting a feel for the types of discussions around your niche, and among your target audience.