According to Morgan Stanley, Reddit's increased advertising spend positions it advantageously over its competitors, with the platform forecasted to achieve significant ad revenue growth through 2027.
Analyst Brian Nowak noted that although he missed out on Reddit's surge, he believes the platform is poised for substantial growth in user engagement and advertising revenue.
Nowak predicts a U.S. ad revenue growth rate of approximately 35% from 2024 to 2027 for Reddit, which would be 2X-6X faster than competitors in the same space.
Reddit's ad pricing remains about 50% lower than its rivals, enabling the company to use multiple strategies to drive user engagement and advertiser returns.
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