Discord, the popular communication platform, known for its aversion to ads, has taken a new step by introducing Sponsored Quests to its users. This move marks a significant shift in Discord's business model as it embraces advertising, albeit in a less intrusive manner compared to other social media platforms.

The announcement of Sponsored Quests was made by Peter Sellis, Discord's SVP of Product, on March 7, with a promise that users would start seeing these ads in the following weeks. Sponsored Quests offer PC gamers in-game rewards for encouraging their friends to watch a live stream of their gameplay through Discord.

According to a slide from a Discord slideshow revealed by The Wall Street Journal (WSJ), the platform aims to expose video games to a wider audience by placing ads in front of players and hoping they will share them within their friend groups. The ads will be targeted based on users' age, geographic location data, and gaming preferences.

Discord had previously tested Sponsored Quests in collaboration with Lucasfilm Games and Epic Games back in May. This allowed users to receive Star Wars-themed gear in Fortnite by getting a friend to watch them play Fortnite on PC for at least 15 minutes.

Despite the introduction of Sponsored Quests, it is worth noting that Discord users have the option to disable these ads in their account settings, thus providing some control over their advertising experience.

Discord's decision to include ads comes as a surprise, as the platform had positioned itself as an ad-free space in order to prioritize instant communication and user privacy. Discord co-founder and CEO, Jason Citron, had stated earlier this year that the company aimed to build products that users would be willing to pay for, aligning their incentives accordingly.

In addition to Sponsored Quests, Discord had previously announced that it would start selling sponsored profile effects and avatar decorations in their Discord Shop, with the rollout expected in the near future. The company is also actively expanding its ad sales team, aiming to hire over 12 people, as disclosed by anonymous sources familiar with Discord's plans.

Despite its growing revenue, which nearly tripled in 2021 thanks to subscription sales for Nitro, adding features like HD video streaming and increased file upload capacities, Discord reportedly remains unprofitable. The company raised over $1 billion in funding and has a cash reserve of over $700 million. Discord currently boasts more than 200 million monthly active users.

While Sponsored Quests may not significantly disrupt user experiences for those uninterested in ads, Discord needs to tread carefully to ensure that any form of advertising remains unobtrusive and doesn't interfere with the primary reasons people enjoy using the platform. The introduction of Sponsored Quests may already be causing some users to reconsider their engagement with Discord.