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Reddit CEO Asks Users To Buy Revamped Membership Because Ads Are âOne Of The Reasons Digg Failedâ - TechCrunch
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âWe could theoretically load up our pages with ads and probably make enough to cover our costs. However, that would significantly degrade the experience of using the site,â said Reddit CEO Yishan Wong in a post asking users to âInvest in Goldâ — the siteâs newly enhanced subscription program. If people pay for ad-free Reddit and new Gold features like filter saving, the site wonât end up like Digg.
Wong started his post to the Reddit blog by saying the site was booming, bringing in 3.8 billion page views and 46 million unique visitors in October. Press from events like President Obamaâs âAsk Me Anythingâ as well as scandals like the violentacrez doxxing have upped awareness of Reddit. But all that traffic comes at a cost.
Redditâs CEO followed up his blog post by writing on a Reddit thread that âIn theory advertising revenue should/could scale with traffic, but since we never tried very hard to sell our advertising inventory, we only run ads on a relatively small percentage of our pages and they do not cover our costs. When Obama comes to âchill on the weekends,â that increases costs, not revenue.â
So Reddit was faced with a choice. Put more ads on the site, or ask more users to pay. The former comes with some big trouble for a site that prides itself on freedom of expression. Wong writes:
âSee, the problem is that if your site is funded primarily with advertising, then you are beholden to your advertisers. If your users choose to post something politically or culturally controversial, you come under editorial pressure from advertisers to remove or modify itâ¦This eventually results in a watering down of the true, authentic content on the site (remember Sears?). Itâs one of the reasons Digg failed.â
Instead, Wong says Reddit has chosen to beef up what comes in Gold membership, which runs for $4 a month or $30 a year. Reddit hadnât been actively promoting the membership plan, but with the surge in popularity, it had to start. Hereâs the new Gold features, some real, someâ¦maybe real.
(From the TechCrunch blog post. Thanks to Josh Constine.)