Reddit plans to test mandatory account creation for platform access outside the United States in the fourth quarter, following a significant decline in Google referral traffic attributed to the search giant’s AI features.
Reddit CEO Steve Huffman reported a notable decrease in Google referral traffic during the third quarter of 2026, directly linking the downturn to Google’s AI Overviews and AI Mode. This strategic shift marks a departure from Reddit’s historical open access model.
The decision to require logins is driven by economic considerations, as connected users are generally more active, easier to target for advertising and generate higher revenue, according to the company.
Reddit’s third quarter revenue reached $895 million, surpassing analysts’ expectations of $878 million, LSEG data showed. However, daily active unique users (DAUq) of 130.3 million fell short of the projected 133.7 million.
Despite beating earnings per share and revenue estimates, Reddit’s stock dropped more than 15 percent following the announcement. Some reports indicated a 33-36 percent weekly decline, according to CNBC.
SEO consultant Glenn Gabe suggested that Google’s core update in May 2026 and an anti-spam update in June 2026 might also have penalized Reddit’s AI-translated pages. Gabe, quoted by Search Engine Roundtable, indicated these updates could have contributed to the traffic loss.
Barry Schwartz, writing for Search Engine Roundtable, highlighted that many websites have reported traffic declines following Google’s updates.
Reddit’s move to mandatory logins aims to mitigate the impact of reduced organic search traffic by fostering deeper user engagement and enhancing advertising opportunities on its platform, the company indicated.
Source: Abondance
