Reddit moves to logged-in experience as AI eats search

Reddit announced Thursday a shift toward a predominantly logged-in experience, signifying a major transformation for the platform that has been operational for 21 years. CEO Steve Huffman explained that the change intends to enhance user experience, strengthen its advertising revenue, and thwart data theft through scraping in the era of artificial intelligence.

COO Jen Wong stated that the transition is not indicative of a strategy shift, as Reddit has historically focused on creating a direct destination. Huffman expressed confidence that the modification would boost engagement and monetization. He noted that logged-in users spend more time on Reddit, allowing for more refined ad targeting.

Despite short-term drawbacks, over 80% of earnings currently come from logged-in users and their app. Reddit will trial the fully logged-in experience outside the U.S. this quarter and gradually implement broader changes. Users will have tailored content, feeds, and suggested communities based on their activities and interests, although the option to avoid personalization exists.

The platform's homepage will remain accessible to non-logged-in visitors. Participation features such as commenting and content ranking will only be available to logged-in users. Reddit will monitor conversion rates to logged-in users as a metric for success. The changes aim to fortify the company's ads business, as logged-in users engage five times more than non-logged-in users, leading to more impressions and higher business returns for advertisers. Performance advertising now accounts for more than 60% of Reddit's ad revenue.