Reddit user growth slows for third straight month- report

Investing.com -- Reddit user numbers declined for the third consecutive month in May, according to new data released by Piper Sandler. The social media platform’s total audience fell by 6 million users month-over-month, with the decline primarily driven by feed ad units, which dropped by 7 million, while conversation units remained flat.

The data shows a broader deceleration trend since March. U.S. audience growth slowed to 9% year-over-year in May, down from 16% in March, while international growth decelerated to 31% year-over-year in May from 51% in March.

Despite Reddit’s user challenges, Piper Sandler reported that the overall digital advertising market is strengthening. Total digital market growth is now projected at 6.3% year-over-year for the second quarter of 2025, an improvement of approximately 80 basis points from last month’s estimate and an acceleration from the first quarter.

Pinterest (NYSE:PINS) showed positive developments in its advertising offerings. Piper Sandler’s testing revealed improvements in Pinterest’s Performance+ product, with Performance+ campaigns now demonstrating better pricing on similar click-through rates compared to standard campaigns. Performance+ outbound cost-per-clicks in May were approximately 17% lower than standard campaigns, a significant improvement from November when they were 25% higher.

Meta Platforms (NASDAQ:META) is experiencing lower cost-per-clicks and cost-per-engagements, which Piper Sandler indicates makes them more comfortable with higher cost-per-thousand impressions (CPMs). The firm also noted that Temu ad units on Meta in the U.S. remain near zero, though this appears to be widely understood by the market.

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