12_Aug_APUS_Essential Insights into Reddit’s new plan for advertisers

Reddit Advertising Plan May Help Brands Without Upsetting Users 

A quick Google search for ‘Blake Lively and floral outfits’ will pull up countless articles showcasing her stunning designer dresses. But if you take that search to Reddit, you’ll dive headfirst into a rabbit hole of public opinions, news, and even controversies—all centered around the actress and her florals. 

And that’s precisely what makes Reddit so unique. Unlike a simple Google search, where one-sided information gets fed, Reddit is where conversation happens. It’s where people dig into the nitty-gritty, share their hot takes, and spark debates. No wonder Reddit is attracting so much attention—it’s where people are flocking for honest, unfiltered discussions. In fact, with over 500 million accounts and a massive jump of 150 million users since 2019, Reddit is clearly on a meteoric rise. 

As Reddit became a go-to platform for the masses, it was only a matter of time before brands took notice. After all, once something catches fire on the internet, you can bet brands will be there to fan the flames.  

What exactly does Reddit have in store for advertisers? Why is it suddenly the hottest platform on the block for brands? And what has Reddit advertising plan stored for brands and marketers? Let’s find out. 

Discussion attracts people; people attract businesses  

Reddit thrives on three primary drivers: niche communities, deeply engaged users, and influential decision-making opinions. With over 138,000 subreddits, it’s a one-stop shop where users can find everything from product reviews and tutorials to recommendations and price comparisons. The best part? The real-time discussion feels genuine—no sugar-coated promotions, just genuine first-hand experiences shared by everyday users. 

Credit: Reddit

This authentic interaction gives Reddit its edge, making it a high-trust, high-engagement platform. Reddit search results are now giving Google a run for its money. And while we’re all chatting about Reddit’s meteoric rise, it’s worth noting that a significant chunk of Redditors don’t even bother with other social media platforms like Facebook, Instagram, X (formerly known as Twitter), or Twitch.  

Advertisers are hitting scores with AmA sessions at Reddit’s niche communities  

Reddit is like the world’s most exciting neighborhood, with subreddits dedicated to everything from fitness and tech to orange cats and obscure cinema. These communities are buzzing with thousands of subscribers who love nothing more than indulging in AMAs (Ask Me Anything), news, controversies, and everyday banter. 

So, what’s the magic formula? By jumping into AMAs, brands can directly tap into these hyper-engaged groups, turning casual chat into clever branding. According to a Global Web Index report, Reddit users are 15% more likely to respond positively to brand interactions than on other platforms. And here’s a fun fact: Millennials and Gen-Zs are more likely to trust recommendations from fellow Redditors than from Amazon reviews. 

The baseline for advertisers? People crave real conversations, not just another one-sided sales pitch.  

Reddit’s new ad format for advertisers is user-friendly and not very ad-salesy type 

YouTube’s unskippable ads and Meta’s overly-targeted nonsense have everyone tearing their hair out. While we all grumble about ads on social media, the reality is that these platforms live off them.  

In 2023, Reddit raked in a whopping $804.03 million in revenue. However, Reddit wanted to shed the traditional social media ad format. Enter the free-form ad—a format that feels more like a friendly post from a fellow Redditor than a hard sales pitch. Imagine a new vegan café in Michigan. Instead of blasting everyone with generic social media Ad templates, this café can dive into subreddits about veganism, sustainability, AI in food (because why not?), and more. 

Credit: Reddit

The beauty of Reddit’s free-form ad format is that it aligns with the platform’s unique culture. Users browse Reddit with intent, searching for specific info or recommendations. Brands can now craft ads seamlessly blending into these intent-driven searches, making them feel more like helpful suggestions than pushy sales tactics. So, while other platforms are busy annoying you, Reddit is making sure its ads feel like part of the conversation. 

Reddit’s ad format could be one of the pros for brands, but Reddit’s plan for paywalled subreddits did not impress users 

Since the platform’s IPO success, Steve Huffman, Reddit’s ambitious CEO, seems to be on a roll. At the end of Q1 of 2024, Reddit introduced a fresh ad format to be more user-friendly and less in-your-face. But by Q3, they hinted that paywalled subreddits could be on the horizon. The idea? Make some content exclusively accessible only to those willing to pay. 

Users, however, didn’t hesitate to share their uncensored thoughts. One particularly vocal Redditor, u/MonkeyHeadYou, slammed the idea, highlighting ethical concerns around paid access. Others echoed the sentiment, sarcastically noting that as feed-in ads weren’t bad enough, now we must pay for specific content, too. 

Despite the backlash, Reddit’s daily active user count is still climbing. The platform has rolled out new tricks to keep users returning, like day-streaks and engagement awards—similar to Snapchat’s streaks—to boost daily engagement. So, while the paywall might not be winning everyone over, Reddit’s not giving up on finding ways to keep the community buzzing. 

Cut to the chase  

Advertisers have discovered Reddit as a new social media platform for branding and marketing. As a user-driven platform that supports text, images, and videos, Reddit has been actively working to make itself more advertiser-friendly with its new free-form ad format. 

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