Reddit Shares Insights Into Its Rising Value as a Trusted Chanel for Product Research

Reddit has shared some new insights into how Redditors are using the app to find relevant product recommendations, and how the platform has emerged as a more trusted, valuable complement within the buying journey.

Because according to Reddit, other platforms are being overrun with AI-generated and paid endorsements.

As per Reddit:

“Over half of US shoppers have concerns over the quality and legitimacy of the product discovery channels they use most. Influencers and AI algorithms may appear to steer millions of purchase decisions daily, but trust in their authenticity is eroding. As a result, we believe marketers will begin to see the effectiveness of traditional social channels degrade as consumers increasingly turn to more trusted channels.”

So what channel is the most trusted in this respect? You guessed it:

“In 2023, users added “Reddit” to Google searches 32B times as they sought answers from real people rather than traditional influencers, digital articles or sponsored listicles. This growing behaviour shows that the conversations happening within online communities – which are full of real people, speaking from their own experience and without any kind of ulterior motive or incentive – are often the most valued search result.”

Reddit further notes that its research suggests that users view Reddit conversations as being “more informative” than those on other social platforms, while every second, an average of two Reddittors seek recommendations in the app.

Reddit’s user study also found that recommendations within Reddit communities play a significant role in influencing purchases, with each sector seeing more engagement at different states of the purchase cycle:

• 17% of consumer electronics recommendations in the app are in the discovery phase
• 66% of beauty recommendations are also in the discovery stage
• 52% of auto recommendations happen at the consideration phase
• 30% of consumer tech purchases see the most recommendations during the decision stage

Reddit also says that Redditors are keen to hear from brands directly, with 90% of respondents noting that they’re “open to new ideas when I’m using Reddit”.

“People are more likely to be receptive to brands sharing information about their products on Reddit, than other social platforms, regardless of the category, while 79% of people would be interested in seeing brands share information about their products on Reddit.”

Reddit shared the new info at CES 2024, where it also shared insight into its vision for the year ahead. Which could be a big one for the app, as it also eyes an IPO, at a very high target valuation.

In order to maximize its potential, Reddit will need to maximize its ad business, and with stats like this, it’s hoping to generate more brand interest in connecting with influential Reddit communities.

Some additional considerations for your 2024 planning.

Source link

The post Reddit Shares Insights Into Its Rising Value as a Trusted Chanel for Product Research appeared first on Job From Home Blog.