Discord embraces video ads for mobile apps before expected IPO

In the United States, Discord announced the introduction of video advertisements in its mobile app, set to launch in June 2025. This new feature follows the company's initial introduction of ads to its desktop and console applications in March 2024, marking a significant shift from its earlier stance as an ad-free platform. The mobile video ads, referred to as Video Quests, will appear at the bottom of users' screens, allowing advertisers to showcase trailers, make announcements, and highlight premium content. The push towards implementing ads is part of Discord's strategy to diversify revenue streams ahead of a potential initial public offering (IPO). Given the company's current financial challenges, Discord has turned to advertising as a means to improve revenue generation. In a bid to optimize user experience, users will have the option to either expand or ignore these ads. Peter Sellis, the Senior Vice President of Product at Discord, stated that expanding their advertising presence to mobile is a natural evolution for the company. Historically, Discord has relied on subscription and premium add-on models for revenue, viewing ads as intrusive. However, with growing pressures to become profitable especially as the company approaches a public offering, embracing advertising has become an essential part of their business strategy. Discord's strategy mirrors that of other social media platforms like Reddit, which has intensified its advertising focus following its IPO and achieved profitability by October 2024. Both platforms faced the challenge of balancing user satisfaction with the need to attract advertisers. As Discord continues to innovate and adapt its revenue models, the reception of these new video ads will be crucial in shaping the company's future.