Reddit introduces new ad blocking feature, raising UX and revenue concerns

Reddit is rolling out a new feature that allows users to block ads from specific advertisers for up to a year, giving them more control over the ads they see. While this update enhances user experience, it also raises potential concerns about its impact on Reddit’s advertising revenue.

The platform has introduced a “Hide” option within its ad dropdown menu, enabling users to prevent ads from a particular advertiser from appearing in their feed. According to Reddit, this decision is a response to user feedback demanding greater customization in ad visibility.

“We’ve heard feedback that redditors want more control over the ads they see on Reddit. So, this week, we’ll start rolling out an update to do just that: redditors will now have the ability to ‘Hide’ an ad from their feed – and when you do, we’ll automatically hide future ads from that advertiser account for at least a year (you can re-hide the ad after that period of time),” the company stated.

While the update is a win for users looking to refine their browsing experience, it presents a challenge for Reddit’s ad-driven revenue model. If a large portion of users take advantage of the feature, it could significantly reduce available ad inventory, potentially impacting the platform’s earnings.

To prevent mass ad blocking, Reddit has placed a limit on how many advertisers a user can block. While the exact restrictions remain undisclosed, some users have reported hitting a daily blocking cap. This measure helps mitigate the risk of widespread ad removal, but if millions of users block multiple advertisers, the cumulative effect could still be substantial.

Despite the potential revenue risks, Reddit has been expanding its advertising ecosystem. It recently introduced “Conversation Ads,” which embed promotional content within comment threads, and in January, it launched AMA (Ask Me Anything) ads. These additions suggest that Reddit is actively working to balance user preferences with advertiser needs.

Ultimately, the extent of the impact depends on how many users choose to utilize the new blocking feature. Research indicates that most users tend to tolerate ads rather than actively manage them, meaning the financial repercussions may not be as severe as they initially seem.

Reddit has confirmed that this feature will gradually be made available across iOS, Android, and its web platform in the coming weeks.