Reddit Advertising: What Are You Waiting For?
March 20, 2025
7 Minute Read

Reddit, often lovingly dubbed “the front page of the internet,” has long been an enigma for digital advertisers. While platforms like Meta and Google dominate the advertising world, Reddit’s unique community-driven nature makes it a promising, albeit underutilized, advertising channel. And, frankly, intimidating when you're not sure where to start.
As Reddit's relatively new ad platform begins to pick up steam and attention, now seems like the time to dive into the nuances of Reddit advertising - its audience, targeting capabilities, ad formats, plus a first-hand case study to showcase its potential for success in your paid strategy.
Understanding Reddit as a Platform
Founded back in 2005, Reddit is a vast, user-generated content platform where discussions occur within specialized communities called subreddits. Each subreddit has its own rules, culture, and user engagement dynamics run by moderators, making Reddit one of the most authentic digital spaces available today.
The Unique Structure of Reddit
- Subreddits: These niche communities cover topics from finance to fishing to fashion, making them ideal for targeted advertising.
- Voting System: Content is ranked based on user upvotes and downvotes, ensuring the most valuable discussions rise to the top.
- User Anonymity: Unlike other social platforms, users tend to engage more candidly due to the pseudonymous nature of Reddit.
Why Advertise on Reddit?
1. Highly Engaged and Trusting Users
Reddit boasts 175 million active users, with engagement rates that often surpass other social media platforms (yep, that got our attention too). Users trust the platform for its authentic discussions and recommendations, making it an excellent space for well-crafted, community-focused advertising.
2. Low Cost Per Click (CPC) and Cost Per Thousand Impressions (CPM)
Compared to Meta, LinkedIn, and Google Ads, Reddit Ads offer:
- CPC: As low as $0.44 per click
- CPM: Between $0.25 and $0.75 for 1,000 impressions (compared to $7+ on Meta and LinkedIn)
- Results vary based on industry and targeting, but CPCs and CPMs are consistently lower than other major social platforms on average.
3. Reaching an Exclusive Audience
Many Reddit users aren’t active on other social platforms, meaning brands leveraging Reddit Ads can tap into an entirely new audience. When you think about reaching new people that may be interested in your brand, Reddit may be the perfect place to find them!
Best Practices for Advertising on Reddit
1. Blend in with Reddit’s Culture
Reddit users are highly aware of traditional advertising tactics. The key to success is to “Reddit like a Redditor.” This means:
- Using native language and humor (such as the meme example to the right)
- Creating engaging, informative content
- Avoiding overtly promotional or sales-driven language
2. Leverage Community-Specific Targeting
Instead of broad demographic targeting, advertisers should focus on:
- Subreddit targeting: Advertising within relevant communities such as r/Marketing, r/PersonalFinance, and r/Investing (depending on audience and goals)
- Keyword targeting: Reaching users based on their engagement with specific topics
- Interest targeting: Connecting with users based on their declared interests
3. Test Different Ad Formats
Like many other social platforms, Reddit has a few ad formats to consider for your campaign. Also, just like many other social platforms, testing is going to be the key to help identify what's resonating! Reddit Ad formats include:
- Promoted Posts: Blend into the organic content feed
- Image Ads (Single or Carousel): Can appear in various Reddit placements
- Video Ads: Great for branding and engagement
- Freeform Ads: A new format that allows for long-form storytelling with text, images, and links
Case Study: A Stock Trading Platform’s Success on Reddit
A financial services client specializing in stock trading sought to explore Reddit as a marketing channel. Their primary goal was to increase trading platform sign-ups. Together, we executed a Reddit Ads strategy focusing on:
- Targeting: Stocks, investing, and day-trading subreddits
- Ad Format: Promoted posts with engaging financial insights
- Budget: $5,000 per month
Results:
- 3 million+ impressions at an average CPM of $5
- CPC of $1.28, significantly lower than Google Ads
- Surge in applications, attributed to Reddit Ads
Although tracking conversions on Reddit can be complex, the client's overall brand awareness and application volume increased significantly after incorporating Reddit into their media mix and paid media strategy.
Potential Challenges and How to Overcome Them
1. Navigating Brand Safety
- Use Reddit’s brand safety filters to exclude sensitive content.
- Avoid controversial subreddits and focus on well-moderated communities.
2. Handling Negative Engagement
- At first, consider disabling comments on ads to avoid potential backlash.
- If comments are enabled, ensure active moderation and engagement.
3. Attribution and Conversion Tracking
- Implement the Reddit Pixel for event tracking.
- Leverage UTM parameters to monitor post-click activity in Google Analytics
Who Should (and Shouldn’t) Use Reddit Ads?
Reddit Ads are great for:
- Brands looking for high engagement and cost-efficient reach
- Companies targeting niche, highly engaged communities
- Advertisers seeking new audiences not easily reached via other platforms
Reddit Ads are not ideal for:
- Businesses expecting immediate, bottom-funnel conversions
- Brands with low brand awareness and weak creative messaging
- Companies not willing to adapt their advertising tone to match Reddit’s culture
What’s Next for Reddit Ads?
As Reddit’s ad platform evolves, we're already noticing nome new formats and capabilities on the horizon. You can expect:
- More video ad placements and formats for higher engagement
- Expanded freeform ad capabilities for better storytelling (image below)
- AI-driven targeting enhancements to improve ad relevance
Ready to Get Started on Reddit?
Reddit presents a unique opportunity for digital marketers willing to embrace its culture and advertising framework. With low CPCs, engaged audiences, and minimal competition, it’s a cost-effective addition to any performance-driven marketing strategy.
By understanding how Redditors interact, crafting native-style content, and leveraging community-driven targeting, brands can authentically reach] new audiences of people genuinely interested.
So, if your brand is ready to stand out in a (likely temporary) blue ocean of new opportunity, it’s time to start testing Reddit Ads. Feel free to contact us if you need a hand!
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Scott Diebel
Scott began his career in digital marketing after setting out to join a small business right out of college. Scott was excited to join BFO when they acquired his startup in 2016 and has enjoyed making an impact on a larger scale ever since.
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