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Reddit's US ad revenues will nearly double in 2021

The forecast: Reddit's US ad revenues will increase 89.0% in 2021 to reach $305.1 million, up from $161.4 million in 2020, shattering our previous expectations of $247.9 million in 2021.

Dive deeper:

  • This increase from our previous forecast follows Reddit announcing it hit $100 million in ad revenues in Q2 2021, the first time the company hit such a milestone during a single quarter.
  • The social forum saw higher engagement during the pandemic, as many users began viewing Reddit as a primary information source for news and world events.
  • There were roughly 39.7 million monthly logged in Reddit users in 2020, a figure that will grow 14.4% to 43.3 million in 2021, per our estimates. That said, the actual number of Reddit users viewing the site without logging in is notably higher.

Looking ahead: Reddit is expected to grow 38.9% in 2022 and 23.3% in 2023 to end up reaching over half a billion in US ad revenues by 2023.