Reddit users are worth almost nothing compared to other social networks

Why it's important: Social media sites often base their success on the value generated by a single user. While Twitter generates an average revenue per user (ARPU) of $ 9.48, Reddit's recent revenue figures place their ARPU at just $ 0.30. It's well below all other major social media networks.

In its latest round of financing, Reddit raised $ 300 million from investors for a valuation of $ 3 billion. Much of this comes from the Chinese giant Tencent technology, which has angered many users of the risk of censorship on the site. These investment discussions have highlighted Reddit's current financial and user numbers, and things do not look very good.

Reddit's latest annual revenue is approximately $ 100 million and currently has 330 million monthly active users. CNBC badysts and sources close to the case place Reddit's ARPU at the bottom of all social networks.

Although not all companies publish their ARPU numbers, Twitter would have the highest ARPU among social networks. Despite a bit less MAU than Reddit with 321 million, they reported more than 30 times the revenues of Reddit with a little more than 3 billion dollars. While Facebook has nearly 10 times more Twitter users with a MAU of 2.3 billion, their ARPU is less than $ 7.37.

This shows how Twitter is able to monetize their users and the data they can collect about them.

Reddit believes that its unique access to user demographic data will attract advertisers. Reddit can create a very specific user profile based on the subtitles to which it is subscribed. They also said that half of their users were between the ages of 18 and 24, which is a very valuable age category for advertisers.