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The blackout is starting to have a financial impact on Reddit, but we must stay dark!
(www.adweek.com)
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Not literally take over a subreddit, takeover advertising campaigns are typically a high-key screen space domination type of advertising. Think of something like a video games news site where the homepage is completely covered in advertising for a new, high budget game. Ads at the top, ads at the bottom, ads in the normally-empty margins, and often a focus on articles about the subject.
How that reflects to Reddit I'd never know, it's likely something that's exclusive to the newer layout that I have no interest in using.
This type of advertising is the death-knell of any site, because at that point you're interacting with an advert with some extra elements rather than a site with ads.
I'm of the opinion that it has a time and a place, but I do agree that it's exceptionally intrusive to the site's normal experience and should be very rare and short-lived. Any more than a day and its runs afoul of the people who just aren't interested.
And that's why they will get rid of old.reddit. If they are cutting third party apps to increase ad revenue, then they will do the same with old.reddit