Reddit's (RDDT) stock price jumped more than 4% on Monday after the social media platform announced a major partnership program with several sports leagues.
The company said the program aims to bring fans exclusive content and create new advertising opportunities.
The partnerships involve the National Football League (NFL), National Basketball Association (NBA), Major League Baseball (MLB), PGA Tour, and NASCAR.
According to the company, these leagues already boast some of the most active communities on Reddit, with sports being one of the fastest-growing interest areas on the platform.
Furthermore, they feel the collaboration can enhance the Reddit experience for sports fans, who can expect a stream of exclusive content, including video highlights, behind-the-scenes footage, player AMAs (Ask Me Anything), and more throughout the seasons and major events.
The company believes this partnership is a win-win for both Reddit and its advertisers, with fans gaining access to exclusive content, while advertisers can leverage the passionate sports communities on Reddit to promote their brands.
The press release cites a successful test program with the NFL during the 2023-24 season, where an advertiser saw significant lifts in purchase intent, brand favorability, and awareness.
With the inclusion of major leagues like the NFL and NBA, the program is seen as having the potential to significantly boost user engagement and attract new advertisers to the platform. This positive outlook is reflected in the 4% jump in Reddit's stock price, indicating investor confidence in the future of this partnership.