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I’m sure that fact will really pump up demand for their IPO.

bbor 3y ago
Is this sarcastic or am I missing some point? More users == more money, and India is the biggest under-tapped single market in social media, if you consider it a "single market". I don't get why being popular in India would be a bad thing...
- moffkalast 3y ago
  Reddit sells ads, and ads that aren't going to US or UK users are priced at rock bottom rates. Ask anyone who owns a website that runs adsense.
  - deleted 3y ago
    [deleted]
- berkle4455 3y ago
  Investors do not care about just DAUs (daily active users) anymore, they care just as much about ARPU (avg revenue per user) At Facebook, users from Asia Pacific region monetize at around ~1/15th of US&CA users. The costs to serve those users remains relatively fixed on a per-user basis, so expect those costs to inflate by 10-15x to earn the same revenue. Will Reddit drastically change their business model to appeal to Asia Pacific users and advertisers? It's possible but extremely unlikely and pivoting your business model months from IPO isn't a good plan. A flood of India users to a western-centric platform is how you kill that platform (see Quora).
  - ddingus 3y ago
    Quora got whooped! I shudder at how fast and intense the change was.
    - quaintdev 3y ago
      And now I cant see a single answer behind its login dialog. That's how platform dies.
      - ddingus 3y ago
        Yup. I loved Quora. Was a Top Writer every year. I look at my fun Quora keepsakes and sigh... brutal.
  - bbor 3y ago
    Thanks, well explained! I get that. Your last sentence definitely makes me sad, I guess we have a ways to go to meaningfully achieve the goals of the internet - perhaps LLM-enhanced translation auto-integrated into all the major browsers will help with that…
    - quaintdev 3y ago
      What happened to Quora happened to YouTube, Instagram, WhatsApp as well. They are not dying. I'm pretty sure they are earning good or they would have exit the market long ago.
  - jacooper 3y ago
    Can you please clarify how indian users killed Quota? Is it because India ads weren't paying enough?
- kortilla 3y ago
  Yeah, at a high level more users == more money, but not all users are created equal. Indian users cost the same as US users in operational load but are worth a fraction of the advertising revenue. As long as they are net positive it’s good for reddit, but the fact that reddit was struggling to make money on the biggest margin users does not bode well.

bbor 3y ago

Is this sarcastic or am I missing some point? More users == more money, and India is the biggest under-tapped single market in social media, if you consider it a "single market". I don't get why being popular in India would be a bad thing...

moffkalast 3y ago
Reddit sells ads, and ads that aren't going to US or UK users are priced at rock bottom rates. Ask anyone who owns a website that runs adsense.
- deleted 3y ago
  [deleted]
berkle4455 3y ago
Investors do not care about just DAUs (daily active users) anymore, they care just as much about ARPU (avg revenue per user) At Facebook, users from Asia Pacific region monetize at around ~1/15th of US&CA users. The costs to serve those users remains relatively fixed on a per-user basis, so expect those costs to inflate by 10-15x to earn the same revenue. Will Reddit drastically change their business model to appeal to Asia Pacific users and advertisers? It's possible but extremely unlikely and pivoting your business model months from IPO isn't a good plan. A flood of India users to a western-centric platform is how you kill that platform (see Quora).
- ddingus 3y ago
  Quora got whooped! I shudder at how fast and intense the change was.
  - quaintdev 3y ago
    And now I cant see a single answer behind its login dialog. That's how platform dies.
    - ddingus 3y ago
      Yup. I loved Quora. Was a Top Writer every year. I look at my fun Quora keepsakes and sigh... brutal.
- bbor 3y ago
  Thanks, well explained! I get that. Your last sentence definitely makes me sad, I guess we have a ways to go to meaningfully achieve the goals of the internet - perhaps LLM-enhanced translation auto-integrated into all the major browsers will help with that…
  - quaintdev 3y ago
    What happened to Quora happened to YouTube, Instagram, WhatsApp as well. They are not dying. I'm pretty sure they are earning good or they would have exit the market long ago.
- jacooper 3y ago
  Can you please clarify how indian users killed Quota? Is it because India ads weren't paying enough?
kortilla 3y ago
Yeah, at a high level more users == more money, but not all users are created equal. Indian users cost the same as US users in operational load but are worth a fraction of the advertising revenue. As long as they are net positive it’s good for reddit, but the fact that reddit was struggling to make money on the biggest margin users does not bode well.