Reddit Inc. has seen a spike in visibility on Google's AI Overviews, now the second most-cited source after Quora. This follows a $60 million content licensing agreement with Google, allowing the use of Reddit data for AI training. Despite increased web traffic, mainly from logged-out users who don't engage deeply, analysts warn that the quality of visits is crucial for revenue. The partnership may not produce significant financial gains as high-traffic users often seek quick answers without continuing on the platform, impacting Reddit's ad revenue potential.
According to analysts, while Reddit’s visibility and web traffic are increasing through Google’s AI-generated summaries, this surge mainly involves logged-out users who have less engagement.
The Semrush report highlights that Quora and Reddit are primary information sources for specific AI prompts, making them valuable for Google's data training, but analysts warn this may not lead to significant revenue.
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