Reddit's potential lies in its authenticity as a valuable source of information, positioning it to rival META, but its advertising products lag behind in user experience and return on ad spend.
The development of AI and search capabilities can significantly benefit Reddit, but the company needs to navigate the challenges of maintaining user experience while pursuing revenue post-IPO.
Advertising in the age of AI is evolving, requiring ads to provide valuable information like search results; Reddit's unique position as a source of true information can be leveraged to design smarter ads that complement user queries.
Generative search engines are changing how we consume information and threatening the traditional publisher advertising model.
A new business model of programatic RAG royalties is seen as a solution to AI scraping, involving AI sharing revenue with content sources.
Challenges in implementing a RAG royalty network include trust issues, measuring content value, and determining fair royalties for different publishers.
The internet is shifting from being text-based like a book to being more interactive like conversing with authors.
AI search results are evolving, leading to 'zero-click' searches, where users don't click through to websites, impacting traditional publishers.
Generative AI is transforming information search, enabling the creation of bespoke content and the interaction with vast pools of structured and unstructured data.