Technology
This is the official technology community of Lemmy.ml for all news related to creation and use of technology, and to facilitate civil, meaningful discussion around it.
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But that is exactly the problem with third party apps ..they don't show ads so they make no add revenue on people using apps like Sync and Apollo or RIF.. The official app does. I understand why they are trying to push people to their app, but the route they took was worst case scenario.
That's not a problem with third party apps, that's a problem with Reddit's API that doesn't send ads to third party apps. It's entirely a problem of their own making, which they could have fixed years ago, but chose not to, and are now using as a fallacious excuse to shut off access.
Once upon a time, Reddit didn't even have ads.
Third party app users generate content that make adds possible. Get out of here with this pitty reddit problems.
You're ignoring the other effects of third party apps - which is to have significantly added to the number of users they have to show ads to in the first place.
Making their API free encouraged active development which increased user engagement. So it absolutely did increase their revenue because it helped to increase the popularity of their site in the first place.
This.
Put more explicitly:
3rd party apps bring more people to the site, or keep them there longer.
Those people create content in the forms of posts proper and comments— hell, even down to just voting— that feeds the site engagement for users through 1st party interfaces(the ones getting ads), keeping them there longer, and seeing more ads.
Better moderation tools help mods keep online communities healthy, and the kinds of places we are happy to spend unhealthy amounts of time on.
Lest we forget how dumb reddit is, they didn't have a mobile strategy in 2014, which necessitated buying Alien Blue.
If you look at the history of reddit, it has succeeded entirely in spite of management decision. Gotta say, even being on the site since 07-08, even I got this wrong. I expected reddit to do something dumb, I just didn't expect them to do the most dumb thing.
Why didn’t Reddit try to buy out these third party apps, then? They’d have had the superior functionality AND they could have added ads.
They could have added ads at any time, by feeding them into their API, which they could have done at any time, but didn't.