News for hackers. Stuff that matters.

A comment on Fidelity has cut Reddit valuation to $4.5B from $10B. Parent comment

Re:Fidelity has cut Reddit valuation to $4.5B from $10B by rchaud on Friday June 30, 2023 @03:10PM (#36540564)
> At the end of the day, most people log in to reddit once or twice a month. Those are the users that are being targetted by advertisers anyways

You have this exactly backwards.

Ads work on repeat exposure, aka impressions. Social media companies have no other reason to optimize for user session length.

Also, someone who uses Reddit once/twice a month would not need to have an account to begin with. Even if they did, their lack of activity would be a negative for ad targeting.

[ Parent | on HN ]
Re:Fidelity has cut Reddit valuation to $4.5B from $10B by chinchilla2020 on Saturday July 01, 2023 @04:53PM (#36555074)
Incorrect. Highly active and power users tend to adblockers and are unlikely to click since ad impressions don't mean anything to them. Casual users are the money maker.
[ Parent | on HN ]