Reddit wants to be a big company using a site where big companies are the enemy. They could do it, but they need to overhaul the ad system.
Having purchased more than a few ads, I can tell you that their platform needs serious help. They're already a step behind because users don't give location or age. To an advertiser who knows the customer, this results in blanketing people you know aren't interested.
The real problem is that targeting ads to interested audiences results in very few interactions. When you target to a sub, you have a good chance of showing up on that sub's home page - but no one really goes to a sub home. You need to get people on their front pages. The front page is hyper-competitive: you are bidding against people who are willing to serve ads to ANYONE (ahem, Hipmunk). I've still had some success, but it varies a lot depending on when people buy ads. Their planning tool cannot be relied upon.
If reddit were a grown-up advertising company, they'd run it on a cost-per-click bidding basis for link/comment/share/save interactions. Votes would be free to the advertiser, but they'd use recent upvotes and downvotes as a quality score to push ads that people hate off the site and encourage ads people don't mind by giving them a competitive edge. They'd also create more sophisticated targeting options, e.g. people who subscribe to /r/A AND /r/B. Or people who subscribe to /r/A AND either /r/C OR /r/D.
>> When you target to a sub, you have a good chance of showing up on that sub's home page - but no one really goes to a sub home. You need to get people on their front pages.
Not arguing with your larger points, but this is completely untrue for me — I only use Reddit via subreddit home pages, i.e., I never go to the "front page". I don't even know what a "front page" is. Is that where you just go to http://reddit.com/? I must have visited that once, way back when I first started using Reddit, but since then, never.
I have a dozen or so subreddits I'm interested in and when I will occasionally get a whim to check up on one of them, I navigate directly to the subreddit (autocomplete in the browser makes this easier). I also subscribe to RSS feeds for my subreddits.
If you subscribe to the subreddits you like, and unsubscribe from the ones you don't like, then your logged-in homepage (http://www.reddit.com) will only show posts from the subreddits you like.
Basically it will be like looking at your subreddit RSS feeds, but sorted by votes in addition to recency.
I think they know their ad system sucked so I read somewhere that http://adzerk.com/ is now handling almost all of their ads after starting with their display ads.
Having purchased more than a few ads, I can tell you that their platform needs serious help. They're already a step behind because users don't give location or age. To an advertiser who knows the customer, this results in blanketing people you know aren't interested.
The real problem is that targeting ads to interested audiences results in very few interactions. When you target to a sub, you have a good chance of showing up on that sub's home page - but no one really goes to a sub home. You need to get people on their front pages. The front page is hyper-competitive: you are bidding against people who are willing to serve ads to ANYONE (ahem, Hipmunk). I've still had some success, but it varies a lot depending on when people buy ads. Their planning tool cannot be relied upon.
If reddit were a grown-up advertising company, they'd run it on a cost-per-click bidding basis for link/comment/share/save interactions. Votes would be free to the advertiser, but they'd use recent upvotes and downvotes as a quality score to push ads that people hate off the site and encourage ads people don't mind by giving them a competitive edge. They'd also create more sophisticated targeting options, e.g. people who subscribe to /r/A AND /r/B. Or people who subscribe to /r/A AND either /r/C OR /r/D.