Reddit Targets International Growth to Boost Ad Revenue

Reddit is expanding its focus beyond the U.S. market, aiming to tap into new user bases and advertising opportunities in countries like India and Brazil, according to a CNBC interview with Chief Operating Officer Jen Wong.

Wong highlighted the significant disparity between Reddit's international user base and its advertising revenue, stating that while approximately 50% of Reddit's users are based internationally, these markets currently contribute only slightly more than 17% to the company's overall revenue. She emphasized the substantial growth potential outside the U.S., noting that other platforms have a much higher proportion of international users.

"So that points to a lot of our future user growth opportunity definitely outside of the U.S. and local language," Wong told CNBC. "The opportunity, the way I think about it, is every language is an opportunity for another Reddit."

Reddit's historical focus on English-language content is shifting as the company leverages AI-powered translation tools to reach a broader audience. The company's AI-driven translation feature, launched earlier this year, is expected to support around 20 to 30 languages by year-end. This feature has already contributed to a 47% year-over-year increase in daily active users, reaching approximately 97.2 million, as announced in the company's strong third-quarter 2024 results. This growth, along with investments in ad tech, fueled a 68% year-over-year revenue increase to $348.4 million, leading to the company's first-ever profitable quarter as a public company.

Wong cited the U.K., Philippines, India, and Brazil as some of Reddit's fastest-growing markets, with India showing particularly strong growth.

"India’s growing really rapidly," Wong stated. "We see a big opportunity in India." She highlighted India's large English-speaking internet population and the significant engagement around popular topics such as cricket and Bollywood. The company is also engaging with moderators in these key markets to foster community growth.

In addition, Reddit has recently overtaken X (formerly Twitter) as the fifth most popular social media platform in the UK, reaching 22.9 million UK adults in May 2024. This surge in popularity is attributed to factors such as Google's algorithm updates boosting Reddit's organic search traffic, potential changes to third-party app access, and publicity surrounding Reddit's IPO.

Reddit's strategy for international expansion centers on a phased approach to advertising. The company initially focuses on cross-border advertising, such as a European brand advertising in the U.S., before building local teams to target specific markets once they reach approximately 10% of a country's internet user base.

Beyond user growth, Reddit is also investing in improving its search functionality. CEO Steve Huffman previously identified search as a focal point in 2025, aiming for "beautiful results pages" and the integration of large language models. Wong elaborated on this strategy, explaining that Reddit aims to enhance user navigation by connecting related posts and communities, thus addressing a current limitation of the platform. Huffman has also highlighted Reddit's high Google search ranking and its use by the White House to disseminate critical information during recent hurricanes, signifying the platform's growing influence.

"You land on a post and but it’s almost like a dead end," Wong explained. "But there are a lot of posts, often like that post, or there are other posts like that post in other communities. And so giving you a total view of what that looks like is a really interesting opportunity." Future plans also include modernizing search capabilities using large language models and expanding its business offerings to support businesses and creators, including a new Reddit Pro service.