Reddit plans to require sign-in as search referrals decline
Reddit says it is moving towards a primarily logged-in experience as referrals from search engines decline, in part because AI search is answering more queries without sending users to websites. The change would give Reddit more control over access to its data for licensing and could help it earn more from users through targeted advertising.
In the third quarter, global daily active users were flat at 130.3 million, while US daily active users fell to 50.7 million from 53.2 million in the previous quarter, a 2% year-on-year decline. Reddit said search referrals were down by more than one million a week on average in October and warned daily users could fall by a low double-digit percentage next quarter if the trend continues. Revenue rose 53% year on year to $895 million, including $48 million from non-advertising sources such as AI data licensing.
In short
- Reddit plans to make its experience primarily logged-in.
- Search referrals fell by over one million a week on average.
- Third-quarter revenue rose 53% to $895 million.
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The case for
Requiring sign-in could help Reddit protect the value of the discussions and user data that underpin its business, especially as search engines and AI services draw on that material without sending visitors back. A more logged-in audience may also support better targeted advertising and new licensing revenue, helping Reddit fund the platform while giving it more control over how its data is accessed.
The case against
Making sign-in a condition of access could put off casual readers who arrive through search, further reducing traffic and the visibility of communities that rely on being publicly discoverable. It may also narrow access to useful discussions and make Reddit more dependent on advertising and data licensing, raising concerns about privacy and whether users’ contributions are being commercialised on terms they accept.
Explained simply
Reddit is an online discussion site where people post in topic-based communities and exchange comments. Many people have reached its pages through search engines, which show links to relevant websites when someone asks a question.
Search services are increasingly using AI to answer questions directly, so users may not click through to sites such as Reddit. Reddit’s move towards requiring sign-in could give it more control over who accesses its posts, including companies that license data to develop AI tools.
The change also matters to Reddit’s business: it earns most of its revenue from advertising, which can be tailored to users’ interests, and has begun earning money from data licensing. Fewer visitors from search could affect how many people use the site, even as its revenue grows.
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Originally published by TechCrunch as “As search traffic dries up, Reddit announces it’s shifting to a logged-in experience”.