As search traffic dries up, Reddit announces it’s shifting to a logged-in experience
techcrunch ·
Reddit is transitioning to a primarily logged-in experience in response to declining search traffic caused by the rise of AI-powered search engines. This strategic shift aims to protect user data from AI scraping and facilitate lucrative licensing deals with model providers. The move also seeks to boost revenue by encouraging more personalized advertising, as logged-in users provide richer behavioral signals than anonymous visitors. Despite a 2% year-over-year drop in U.S. daily active users, Reddit reported strong financial growth, with quarterly revenue increasing 53% to $895 million. Average revenue per daily active user in the U.S. rose 53% to $13.82, highlighting improved monetization efficiency even as overall user numbers stagnate globally. CEO Steve Huffman described the change as a necessary evolution for the platform's future, though he acknowledged it marks a significant departure from the open internet ethos. Testing for the new logged-in requirement will begin in select non-U.S. markets during the fourth quarter, with no immediate global rollout timeline announced.
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