Source: Robinhood.
this post was submitted on 15 Jan 2026
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it’s not down because of digg, literally no investor cares about digg. It’s down because ad spending is down. Ad networks are spending steady on places like google and meta but they’re spending less on reddit.
Apparently this is because reddit sucks at the targeted ad game part and the advertisers feel they get a better return by just building a presence on the platform (eg bots that go “oh that’s cool. By the way have you tried the new Taco Bell™ PepsiCo™ Shitbowl®, now with 10% less petroleum byproducts?”).
This likely means they will become more aggressive about data collection and backend analysis of that data to get conversions up but they’ve been doing this for ages already. Reddits staff ballooned up long before the API fiasco and most of the hires were related to analytics. It only works if they can shift the culture away from nerd haven (aka people with adblockers who despise being advertised to and won’t click through) to facebook grandmas and ig normies that apparently love clicking ads.
They’re at least somewhat successful: while I and most of the people on this platform have shifted away from reddit they aren’t bleeding users like you want to believe. They’re not seeing exponential growth either, but they are seeing shifts to some of those populations. Anecdotally I have several family members in their 40s and 50s who were known for facebook drama and they are adopting tiktok and reddit nowadays. They eat up the obviously fake shit on relationshipadvice and places like that bc they’re primed from spending all day scrolling ig and youtube shorts to just digest content without any questioning of veracity and they ultimately love the outrage cycle.
All you said is probably accurate, but this one little dip was probably unrelated. It's already back up to where it was.