Reddit works because it’s anonymous, information-dense and relatively ad-free. Change any one of those three and the user base will abandon you. It’s been Reddit’s dilemma since the beginning: you can’t monetize a toxic user base that has total freedom. Sure you can try to drive away the toxic users, but it turns out that those toxic users are also pretty influential in non-toxic aspects. I’m still skeptical of Reddi…
Ads have cognitive cost that users pay for the service. Price competition in free service means annoying users less with ads. If there is competition and innovation in social media works, it has the potential to become the lowest profit margin business sector ever existed once it matures. Wast volumes and very thin profit margins.