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How GameStop propelled Reddit to the Super Bowl
Reddit’s global popularity has exploded after its WallStreetBets community became the centre of a rebellion fixated on toppling the Wall Street hedge funds, with the social media platform now determined to convert its newfound fame into revenue.
How GameStop propelled Reddit to the Super Bowl
Reddit’s global popularity has exploded after its WallStreetBets community became the centre of a rebellion fixated on toppling the Wall Street hedge funds, with the social media platform now determined to convert its newfound fame into revenue.
Reddit’s mobile installs rocketed by 43.7 per cent between December 2020 and January 2021, from 4.6 million to 6.6 million. Year-on-year, the increase equalled 127.58 per cent.
According to data acquired by Finbold, Reddit’s newfound fame was largely driven by GameStop’s success, with traders who missed out on the rally looking for the next recommendation in the subreddit.
“The subreddit was also responsible for the surge in AMC and Blackberry stocks. Some of Wall Street's key players feared that the WallStreetBets craze might have long-lasting effects on the market,” Finbold’s report reads.
“There were concerns that the buying frenzy could potentially destabilize the entire market and hurt overall confidence."
Recognising that its continued growth will be influenced by how many new users it can retain after the WallStreetBets mania cools down, Reddit decided to go big – cashing out thousands on a five-second ad televised during America’s biggest sporting event, the Super Bowl.
While watching the final of all finals on Sunday, viewers in certain markets saw a short but eye-catching ad reading: “Wow, this actually worked. If you’re reading this, our bet paid off.”
“Big game spots are expensive, so we couldn’t buy a full one,” the ad read.
The platform revealed that its entire marketing budget was spent on securing five-seconds of airtime.
“One thing we learned from our communities last week is that underdogs can accomplish just about anything when they come together around a common idea,” Reddit said.
“Powerful things happen when people rally around something they care about. And there’s place for that. It’s called Reddit,” it continued.
And powerful things are happening for Reddit. According to Finbold, global interest in the phrase ‘Reddit app’ has surged on Google, with the phrase attaining the peak popularity score of 100 as of February.
Based on regional interest, as of 7 February 2021, Canada ranked top with a popularity score of 100, followed by Singapore at 88, while the United States is third at 82.
New Zealand registered a score of 69, while Ireland ranks fifth with 67, the same score as Australia. Norway has a popularity score of 52, followed by the Philippines at 48. The United Kingdom is ninth with a score of 44, while Puerto Rico is 10th at 38.
Given its Super Bowl stunt, these figures are only expected to rise, with Reddit itself declaring “anything is possible”.
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