Bloomberg Audio Studios, podcasts, radio news delivering a better than expected forecast was Reddit social media platform has benefited from data licensing deals of course of open Ai and Google, but it's really about growing advertising business that drives At this time. We spoke the Reddit COO Gen Wong.
I think a lot of the things that we're doing are working. You know, you saw our active advertiser account grow seventy five percent year over year in Q three, and I think that's the result of our go to market and acquisition investments, as well as making our platform more automated and simple to use, as well as really delivering more performance, particularly at the mid and lower funnel where a lot of mid market and SMB businesses like
to transact. We also grew nine out of fifteen verticals over fifty percent year over year, and I think that shows the diversification of our business, how robust it is across you know, every vertical and every objective, so every advertiser can find success on our platform. So those investments that we've been made are really paying off, and.
The investments in translation really paying off. When you think about diversification internationally, how is that still working? How much low hanging fruit is there to grow outside the United States.
Well, I think there's this enormous headroom outside of the US. Our traffic today is about fifty five percent outside of the US and forty five percent in the US, and the rest of the world has been growing. And every country that is a non English country is just an
opportunity to build another Reddit. And the process of doing that starts with machine translation, using AI to translate universal conversations so that somebody in France or Germany who operates in a non English language can have access to great content and communities on Reddit. And then of building local communities so that if you're in France you have a local bred community, German in Germany, your local football communities
so that it feels local, your city communities. All of that is opportunity for us, and opportunities to build another Reddit for every language in culture.
It's really interesting that AI is really the tailwind here. Whether it's the ability to serve your companies, those that are advertising with you that much more sophisticated applications, the way in which they're able to advertise with you, whether or not it's the AI that's helping you do translation but also we know that a big part of the business has started to become how you're used by AI
LM producers. How is that a stage of priority? Can you just weigh it up for us, the prioritization of advertising versus the prioritization of making these deals with big llms if you already have done with Google and open Ai.
Yeah, our core business is advertising. It's a business model that has a lot of tam and you know, it's a big addressable market. I think we've a lot of headroom there. Our ad platform is growing, our marketplace is growing, as I said, sixty percent plus year over year, and we really like our roadmap there. There are thousands more advertisers that can be on our platform, in addition to more verticals and more geographies to come onto our ad platform.
So we see a lot of opportunity there across the funnel in automation, in ad formats, and even in delivering more performance for our advertisers. So that's our core business and that's where we're focused.
What about the AI chatbots and then actually helping you in terms of driving traffic, When does that really start to bring to bear?
You know, that's a space that is just under incredible heavy construction because it's also new and it's changing. The UI is changing, the products are changing, you know, how we think about you know, the use of AI, even on our platform on Reddit is changing. So you know, it's hard to say, I think, but I think, you know, I would say the relationships that we have with the lms are not partnerships. The relationships are really healthy and
we continue to learn a lot through these partnerships. I think, you know, we've certainly learned that our data is highly appreciated. It's highly used and cited. I think we're the top most sourced domain in Q three, So I think you know, we're watching that area very very closely as it evolves.
Gen Wong readit, COO, they're talking of relationships with l lms.