If the market for initial public offerings recovers in the new year, one company that aims to go public early on is Reddit. An IPO will put the spotlight on the prospects for Reddit’s advertising business, which has fallen short of ambitious growth targetsoutlined by executives two years ago. ...
The company I work for spends ads on social media companies for ransomware protection and reddit spend is regularly negative. That means we spend more money on advertising than we do in income. We only do it to maintain some market share but otherwise it’s just a pure loss on that platform.
Lots of companies spend more on ads than they make. It’s a growth strategy.