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> If the ARPU is on the order of $0.12 a month Is that a matter of fact? How do you know it isn't higher? Also consider that it's not just advertising, it is
by annexrichmond 3y ago
> If the ARPU is on the order of $0.12 a month
Is that a matter of fact? How do you know it isn't higher? Also consider that it's not just advertising, it is also about funneling users to new products Reddit may want to develop
- rcxdude 3y agoYou can see how that number is derived in the post. It's based on very optimistic projections from data that reddit has previously released about their revenue, and very pessimistic projections of their user growth. If reddit somehow has massively increased the value they can get from each user compared to that I think the burden of proof is on them for that.
- yifanl 3y agoFrom TFA, $0.12 is an optimistic calculation taking better-than-best revenue divided by a pessimistic user count. We can double that again if you're expecting a late-stage product like reddit to launch a new highly monetizable feature soon, and it's still quite far away.