Discord to Introduce Sponsored Ads, Contrary to Past Claims
ICARO Media Group
In a surprising move, popular chat app Discord will be implementing sponsored advertisements on its platform, contradicting its previous stance against such advertising. The decision aims to boost the company's revenue, which has surged to $600 million on an annualized basis - four times more than its earnings in 2020, according to The Wall Street Journal (WSJ) report.
To support this advertising endeavor, Discord plans to hire over a dozen professionals for ad-sales positions. These targeted ads will be customized based on users' geographic location, age, and gaming preferences. They are expected to appear in the bottom left corner of users' screens while they use the application.
Despite the introduction of ads, Discord will reportedly offer users the option to disable them in their account settings, ensuring a level of control and customization.
This declaration marks a significant change in the company's stance on advertising. Discord's CEO, Jason Citron, previously expressed opposition to sponsored ads, emphasizing the importance of user comfort and safety during an interview with NPR. "We believe that people's data is their data and that people should feel comfortable and safe to have conversations and that their data is not going to be used against them in any way that is improper," Citron had stated in 2021. "We take privacy very seriously. We do not scan people's messages. We do not read them."
It is noteworthy that Discord has not made a public announcement about the introduction of these new ads. Insider Gaming has reached out to the company for comment on the WSJ report and will continue to update this story if a response is received.
In January, Discord faced significant workforce reductions, with 170 employees, accounting for 17% of its staff, being laid off. This move potentially indicates the company's ongoing efforts to streamline operations and adapt to changing market dynamics.
The decision to incorporate sponsored advertising on the platform has generated mixed opinions among Discord users. Some are concerned about the impact on user experience and privacy, while others see it as a necessary step for the platform's financial growth and sustainability.
As the implementation of sponsored ads on Discord becomes a reality, the user base eagerly awaits further details and insights into how these changes will be integrated into the platform.