June 15, 2023
Reddit’s decision to implement charges for accessing its APIs has led to a significant blackout of popular subreddits and the subsequent shutdown of various third-party applications that rely on these APIs. The blackout is causing concerns among advertisers, as the reduced reach and effectiveness of advertisements on Reddit could potentially impact their marketing campaigns.
Since its commencement on June 14th, the blackout has already affected a substantial number of subreddits, with over 7,700 going dark as of June 15th. This development has the potential to diminish the platform’s traffic, particularly as a significant portion of Reddit’s visitors come from search engine referrals.
Advertisers are responding to the blackout by taking measures to minimize negative effects. RatePunk, a hotel comparison site, has stopped advertising and content marketing on Reddit due to reduced user activity during the blackout. CJ&CO, a top digital marketing company, has shifted their Reddit budgets to other platforms for 15% of their clients who heavily rely on Reddit for marketing.
On the other hand, Karim Salama from e-innovate warns that the protest could undermine Reddit’s reputation as a reliable advertising space. Despite these opinions, advertisers are seeking alternative ways to reach their target audiences during the blackout.
While Reddit hopes that the protest will not result in significant long-term consequences for advertising on its platform, the current blackout undeniably poses challenges for marketers and has prompted a strategic shift towards other advertising channels.
The sources for this piece include an article in Digiday.
