As a social platform, Reddit is seen as a more quirky niche platform where “researchers” go to talk about conspiracies related to celebrities, read threads on how to help their garden flourish, or read subreddits about things they want to purchase or other users' more detailed reviews on a specific product. These communities (called subreddits) can be anything from pop culture, the latest and greatest, sports news, lifehacks, and more. Also, another way Reddit is unique is that the users are anonymous. Think of it as a platform made up of like-minded people that can anonymously post their thoughts and feelings about related topics.
History of Reddit Advertising
Reddit was founded in 2005 by two students from the University of Virginia, and the site was later acquired by Condé Nast Publications. The ability to advertise on the platform came shortly after the launch of subreddits in 2006. It later introduced two new advertising options: sponsored content and a self-serve ads platform. However, it didn’t invest more heavily in marketing capabilities until 2018, after its largest round of funding came. As of October 2023, Reddit is also stated to be the 18th most visited site in the world, with roughly 50% of its users living in the U.S. Even more recently, as of March this year (2024), Reddit went public and debuted on the stock market, only adding to its efforts to build out advertising capabilities and get more users on the platform. Also, it has taken efforts to be involved in AI advancements in relation to Google and OpenAI.
Demographic Diversity on Reddit
Reddit at its core is a place for users to connect with each other in a way unlike any other social platform. For starters, users are anonymous, which helps allow for un-filtered commentary between posts in order to continue the conversation. A key feature is that users can upvote or downvote users posts, ensuring the most popular content is shown first. So the way Redditor’s interact and behave on the platform is very different from the likes of more user-generated visual content focused like Instagram or TikTok. Reddit also has a demographic more evenly split between male and females (50% each) and 41% of U.S. users aged 18 and above belong to the 18 to 34 demographic and 64% having a household annual income exceeding $75,000 according to comScore. Also, Redditors are less likely to be on any other social platforms. Redditors are also early adopters and are known for being at the forefront of internet culture and are researchers that go to the platform to gauge public opinion, gather insights, and understand consumer preferences.
Reddit’s Path to Purchase is also unique. Unlike other social platforms, consideration plays a larger role for Reddit. This is because again, Redditor’s are researchers, so they have spent more time looking into and comparing various brands or products before making a final purchase. However, they tend to make these decisions 9x faster and spend +15% more (based on having a deeper knowledge of what they are buying).
Targeted Advertising Made Simple on Reddit
The ad model on Reddit is different to those of its competitors. It relies on contextual and interest-based signals that come from the users within each subreddit. Unlike other platforms, you can reach people based on what they are interested in, passionate about, and what they are most engaged in, not just demographics. What is most unique would be the ability to reach people specific to what communities they are in. And then like other platforms, there is location, interest, and retargeting capabilities.
Crafting Your Reddit Advertising Strategy: Ad Formats to Try
As stated previously, Reddit has only in more recent years invested in its advertising offering. Only 4 years ago was the option to retarget users through pixels added, and a conversion measurement as well as promoting its Ask Me Anything (AMA) format. A year later the carousel ad format, bid recommendation, and conversation placement became available. 2022 brought the introduction of its conversion API, brand lift, video spotlight, and mobile app install ad format. Now, there are more options including lead generation objectives, shopping ad formats, revamping free form ad formats. They also offer a variety of HIgh Impact Offerings which package different ad formats and placements in one with their high-impact offerings - on a home page if you will, however these all require speaking with a sales rep. But don’t let that deter you from exploring the many different options there are on Reddit at this point in time.
Advertising on Reddit can be highly effective due to its engaged user base, targeted ad capabilities, and cost-effective pricing. By leveraging the unique features of Reddit, brands can reach specific audiences, build trust, and drive meaningful engagement. If done thoughtfully and with respect for the platform's culture, Reddit advertising can yield substantial benefits and a high return on investment. Something to consider as part of your marketing mix.
Photo: © Brett Jordan