The biggest problem with Reddit is that their only source of revenue basically demands you to create a completely new ad for ONLY that platform. For everything else you can just make an iframe, drop whatever malicious blinking crap you want, send it to the wild and let ad networks sell and resell space and sometimes drop your ad in it, pay pennies for clicks and even less pennies for each time it's been served.
They haven't tried to enter any ad ecosystem, haven't tried to monetize the massive amount of creativity or anything on the platform. Granted, it's really hard to say "Hey, we've shown your news article to 10 million people, pls pay us" when the news site itself is struggling to get any revenue from those millions of clicks. Not to mention the site might have a question reddit reeeeallly doesn't want to answer "So, was it in a neo-nazi subforum or a porn subforum?"
Yeah, there's just been nothing in ten years. An IPO at this point is nothing but a cash grab awaiting the death of the platform.
What's interesting about the "they should go programmatic" argument is that programmatic ads are increasingly less lucrative thanks to low-quality traffic and the perceived ineffectiveness of cookie-based retargeting. (Yes, please, show me a hundred banner ads for that pair of pants I literally just purchased!) Programmatic ads also tend to generate more profit for the middlemen who broker transactions than they do for the publishers who display ads; once all of the ad platforms involved in the transaction have taken their cut, there's not much left.
In response to this, some people have been driving a push back to traditional/contextual ads, similar to what Reddit is currently doing. So, in theory, if Reddit is selling Guaranteed High Quality ad space, and selling it to brands with whom they have a direct partnership,[2] and not getting skimmed off the top by middlemen, they should be raking in the advertising dollars. Right?
But they're clearly not! Or not nearly enough to be profitable.
The efforts against third-party apps are clearly an attempt to drive more ad impressions (because you can't drive impressions if users aren't in an environment where you can serve impressions), but I somehow doubt that that's gonna make a big difference, even if third-party-app-users all threw up their hands and migrated, without protest, to official channels.
[1] The real cash cow among programmatic ads is video advertising, since those placements are more valuable and fetch a higher price, but I also see that as a trap for Reddit—their decision to start natively hosting video seems pretty short-sighted for a company that's already not breaking even. If they wanted to go hard on video ads, they'd have to start prioritizing more video content, which means hosting more video content....
[2] Perhaps not for nothing that half the ads on Reddit these days are for that vaguely evangelistic "He Gets Us" campaign. The buyers clearly have money to throw around, but the relative lack of other ads mixed in has to say something about the (lack of) demand for Reddit's inventory.
There's no reason they couldn't do both, really. They could have spaces for traditional ads, and they could have those direct partnerships.
Direct partnerships might be nice in theory, but it will always require a separate decision and process from the company to partner with Reddit. Considering there are hundreds of different avenues people could be advertising on, I'm guessing Reddit is kind of low on the list.
They haven't tried to enter any ad ecosystem, haven't tried to monetize the massive amount of creativity or anything on the platform. Granted, it's really hard to say "Hey, we've shown your news article to 10 million people, pls pay us" when the news site itself is struggling to get any revenue from those millions of clicks. Not to mention the site might have a question reddit reeeeallly doesn't want to answer "So, was it in a neo-nazi subforum or a porn subforum?"
Yeah, there's just been nothing in ten years. An IPO at this point is nothing but a cash grab awaiting the death of the platform.