Now we know – Google is the unnamed AI company that Reddit reached a content licensing deal with, Reuters reported.

Why we care. Reddit was already experiencing criticism from SEO experts because Google seems to be prioritizing the platform within the Discussions and forums SERP feature. In some cases, Reddit even surpasses the original content sources in search rankings.

Now the question arises: did Reddit gain this prominent visibility in Google's highly valuable search results as a result of, or in part due to this deal? Or is the increased presence of Reddit in Google Search an adjustment following numerous reports about users adding "reddit" to their searches? (Could both explanations hold some truth?)

The deal. According to reports, Google is paying Reddit $60 million annually for access to its data to train its AI models (such as Gemini). However, neither Reddit nor Google has publicly acknowledged the deal, which is said to have been signed earlier this year, just as Reddit prepares for its initial public offering (IPO).

• On Feb. 16, Bloomberg (subscription required) initially reported that Reddit had struck a deal with a major AI firm.

Reddit filed for IPO. This development also came to light shortly after the story broke. Notably, regarding search:

The company is enhancing its search functionality and aims to 'more fully tap into the $750 billion search advertising opportunity projected by S&P Global Market Intelligence for 2027.'

Reddit mentioned plans to use artificial intelligence to boost its advertising revenue and expects to unlock new income streams by providing tools and incentives to 'encourage ongoing content creation, enhancements, and commerce.'

Additionally, it is in the early phases of developing and monetizing a data licensing business, allowing third parties to access and search data on its platform.

Making them pay. Last April, Reddit made it clear that it expects AI companies (like Google, Microsoft, and OpenAI) to compensate them for using its content. It seems Google is now doing exactly that. Steve Huffman, Reddit’s founder and CEO, told the New York Times (subscription required):

• “Reddit’s data is incredibly valuable. But we don’t need to give all that value away for free to some of the world’s largest corporations.”

Rankings jump. As SEO consultant Glenn Gabe from G-Squared Interactive noted on X, the number of URLs from Reddit ranking in Google has significantly increased—from 22 million last May to 41.1 million today, according to Semrush:

• “That’s a huge increase… it’s not just improved rankings, it’s a massive jump in the number of pages ranking.”

Here’s Gabe’s full post:

22M to 41.1M urls -> OK, so Google has a deal with Reddit to train its AI on Reddit content. We also know that the "hidden gems" feature rolled out in late 2023 and Reddit (and other forums) saw a surge. But with this deal, does Google now have a direct feed from Reddit? i.e. Is Reddit… pic.twitter.com/24uVJydTQb

— Glenn Gabe (@glenngabe) February 22, 2024

Official announcements. Just hours after our initial report, Google and Reddit officially confirmed the expanded partnership – Google now has access to Reddit’s Data API:

• Google: An expanded partnership with Reddit
• Reddit: Expanding our Partnership with Google

Key points from Google’s announcement:

• “Over time, we've observed that users increasingly turn to Google to find valuable Reddit content, such as product suggestions, travel tips, and more. Knowing this content is useful, we’re exploring ways to make it even easier to access across our platforms. This collaboration will enable more effective presentation of Reddit content, making our services more useful for users and helping them engage more easily with Reddit communities.”

So yes. Reddit didn’t achieve this level of visibility in Google Search by chance. It was intentional — a feature, not a flaw.

The above is the detailed content of Report: Reddit signs AI content licensing deal with Google. For more information, please follow other related articles on the PHP Chinese website!