What Is Reddit Advertising and How Does It Work?

Written By Alla Levin
January 18, 2023
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What Is Reddit Advertising and How Does It Work?

Whether you’ve looked for real-life advice or visited the site as a place to get lost in funny memes, chances are you’ve visited Reddit. It’s one of the most popular websites on the internet and has a massive user base that spans hundreds of countries and territories.

Because of its ubiquity, Reddit has become a powerful video marketing tool for businesses of all sizes. Reddit advertising offers an unprecedented opportunity to reach millions of people and extend the reach of your business or brand.

So, what is Reddit advertising, and how does it work? In this article, we’ll tell you all you need to know.

What is Reddit, Exactly?

Reddit is an online platform founded in 2005 and has grown to become the ninth most visited website in the world by 2021. It’s a vast, vibrant virtual community of discussion forums called “subreddits” that span a seemingly infinite range of topics and interest areas.

Each subreddit has its topic, rules, and guidelines for participating. People can post content, comment on others’ posts, and upvote or downvote content that resonates with them.

There’s seemingly a subreddit for everything—from popular topics like sports and gaming to specialized subjects like AI or LaCroix flavors, you can find a forum that suits your interests. There are even made-up niches that exist only on Reddit, such as “all hail the onion rings” or “ask me now.”

How Does Reddit Advertising Work?What Is Reddit Advertising

Reddit advertising works by placing ads in subreddits. It’s an effective way to reach a wide range of users who are interested in your product or service.

Reddit Ads are promoted posts that appear in users’ feeds, just like organic content from subreddits they follow. Ads appear in sponsored posts, along with a “Promoted By” line that indicates they are an ad. You can target specific subreddits or create ads across all of Reddit using a keyword or interest targeting.

Reddit’s advertising platform offers three options, allowing you to choose between a link, text, or video post. Each type allows for a 300-character headline that will be seen as the title of your post. If you want to add an image, the Reddit ad size (1200 x 628) is the same as Facebook’s and should display nicely on mobile platforms.

You can also use cost-per-click (CPC) bidding and set a budget for your campaign. The competition in your target market determines the CPC rate, but the average CPC in the US is $3.50.

Why Use Reddit Ads?

With 1.2 billion Reddit users every month and tens of millions of active users, Reddit has the potential to reach a vast audience. As such, it’s an opportunity that social media marketers don’t want to miss out on. Let’s take a look at some of the essential benefits of Reddit ads.

Audience Targeting

Unlike most other social media platforms, Reddit offers the exceptional opportunity to target audiences through subreddits—highly focused areas usually associated with specific interests.

Each subreddit draws in a particular set of people who share common passions and sentiments. And that’s where you’ll find more highly engaged and influential crowds than any other platform cannot match.

Engagement Potential

Reddit is the premier online platform for engaging with people and sharing ideas; it was made with discussion, communication, and expression in mind. You could host an AMA (Ask Me Anything) on your own subreddit to get insights from customers about how they feel concerning your brand or promote content that interests them to boost user engagement.

Take Nordstrom, for instance. The retail store has created a dedicated Reddit handle, Nordstrom1901, specifically to interact with its audience. Nordstrom does this effectively by engaging in AMAs with the Executive team, responding to user queries, and even asking the Reddit community what they would like from the company’s subreddit.

Ease of UseWhat Is Reddit Advertising

Reddit’s self-serve advertising service, consisting of link, text, and video ads, is simple to use and requires no developer. Just upload your creative, add a link, insert engaging text, and you’re done. With Reddit’s easy advertising system at your fingertips, there has never been an easier way to promote your company.

How to Set Up Reddit Ads

Four simple steps go into setting up Reddit ads:

  1. Sign in to Reddit’s campaign management tool. You’ll need a Reddit account, a headline, a thumbnail (140×140 maximum), and a 1200×628 mobile card view image.
  2. Choose your audience. You can use interests, locations, subreddits, time of day, and device type to target the right audiences.
  3. Set your budget, duration, and bid for each ad unit. You can choose between cost per click (CPC) or cost per impression (CPM).
  4. Create your ad. You can add a link, text, an image, a video, and a call-to-action button to your ad.

Once you’ve completed all these steps, Reddit will review your ad before approval. Once approved, your ad will start running, and you can track the ad’s performance in the campaign management tool.

Final Thoughts on Reddit Ads

The growing popularity of Reddit makes it an ideal platform for advertisers looking to reach specific audiences and tap into conversations around their brand or industry.

If done correctly, you can make the most out of this dynamic platform and gain maximum exposure for your business. Remember to focus on quality over quantity when creating content—this is vital to driving engagement and delivering a positive ROI.

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