Reddit Heats Up Major Sports League Partnerships With Ads, Fan Posts

Reddit Heats Up Major Sports League Partnerships With Ads, Fan Posts

by , Staff Writer @lauriesullivan, July 22, 2024
 

Reddit Heats Up Major Sports League Partnerships With Ads, Fan Posts

Reddit has struck deals with major sports organizations through a program that should help it increase revenue and drive more traffic to the site.

Deals with the NFL, NBA, MLB, NASCAR, and PGA Tour will bring more sports highlights and ads to Reddit, as deals for licensed clips give it a way to make money from fans’ posts.

The program will allow Reddit to show game highlights, behind-the-scenes videos, and ask-me-anything (AMA) sessions with players.

Reddit said it has more than 1,000 active communities in the sports category, and interest in those forums has increased. The company says performance is up and screen views on sports-related forums has risen 26% during the past 12 months.

Advertisers participating in the program on Reddit — including Samsung, Ford, Volkswagen of America and FanDuel — can show ads alongside video content posted by the leagues. Reddit will then likely share the revenue from ads with participating sports leagues.

The company believes that the majority of sports followers view sports as a culture — and that this culture is as important as the games themselves.

Brent Lawton, NFL vice president of business development and strategic investments, believes the collaboration for the past five years has been successful, and renewing the partnership will help it test new ways to engage with fans.

The NFL began testing the program during the 2023–2024 season with video content and what the site calls AMAs featuring Pro Bowl players, for example.

Reddit has been looking for new ways to generate revenue since going public.

Its big move with sports teams also moved the stock. In mid-afternoon the stock rose today more than 8% after the company announced the partnerships. RDDT shares outpaced the S&P 500. At 3 p.m. Eastern, the stock rose to $69.91.

Since going public, Reddit has made a $60 million annual AI licensing deal with Google, and a deal with OpenAI for its data through an API.

OpenAI also became a Reddit advertising partner.

Deals with the NFL, NBA, MLB, NASCAR and PGA Tour will bring Reddit more sports highlights and ads as deals for licensed clips allow it to make money from fan posts.
 
 

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