By the end of 2023, just before its IPO, $Reddit(RDDT.US) had already amassed a global DAU user base of 73.1 million, with nearly half of them being from the U.S. For comparison, a similar community platform like Pinterest, which is already public, reached a DAU of 130 million by the end of 2023.

However, in terms of monetization capability, Reddit lags far behind. In 2023, Reddit's revenue was only $800 million, while Pinterest's exceeded $3 billion—a threefold difference. Why is the efficiency gap so huge?

On one hand, there's the "innate disadvantage" of the platform's nature; on the other, there's the "acquired inaction" of its management.

Compared to other social platforms, Reddit's most distinctive feature is its "grassroots" nature—it downplays the influence of the platform and influencers, providing users with a great experience. However, this obviously affects advertisers' performance. Reddit has also stuck to its fully anonymous social model, where users cannot follow or track each other long-term.

Another issue is management turmoil. Reddit went through three rounds of leadership changes. Before 2011, it was mired in content moderation scandals (lacking a content review mechanism, allowing users to freely post toxic content like pornography and gambling, which deterred advertisers; initial attempts to regulate content faced backlash from longtime users). It wasn't until 2016 that Reddit launched its official app, and before 2018, it hadn’t even established a proper ad system. These upheavals directly caused Reddit to miss key strategic opportunities during industry shifts, slowing its growth and normal commercialization.