Reddit is not always the first platform that comes to mind when advertisers are thinking about paid social, but it should not be overlooked. Reddit is a fast growing platform that allows advertisers to reach a very niche audience at a reasonably low cost. The Reddit platform does have some downfalls though, such as a less advanced reporting platform as compared to competitors. Here, we discuss the benefits and challenges of advertising on Reddit and some helpful tips to create a successful campaign.
What is Reddit and who uses the platform?
Reddit is a network of communities where people can dive into their interests, hobbies and passions. It is a discussion-focused platform and is often referred to as “the first page of the Internet.”
There are 52 million daily active users, which represents a 44% increase from October 2019. The platform sees 430 million monthly active users.
- The vast majority of Reddit users are in the United States. 221.98 million users are in the United States, followed by Australia with 17.55 million users and India with 13.57 million users.
- Two-thirds of Reddit users identify as male.
- Reddit is most popular among the 25 to 29 year old age group. 64% of Reddit users are between the ages of 18-29.
- The majority of Reddit users have a college degree or some college education.
Benefits of advertising on Reddit
- Reddit ads can reach very niche audiences. There is a community for anything you can think of on Reddit. Ex: If you are selling liquor, you may consider targeting the r/cocktails or r/Bartenders communities.
- Because Reddit has such a large number of users, CPMs are more efficient than some other social platforms.
- Audience targeting is not only based on interests like other platforms, but also based on communities, also known as subreddits. These communities are often made up of very engaged users, so it is important to learn about the communities you are targeting and tailor your creatives to these communities.
Challenges of advertising on Reddit
The Reddit platform reporting capabilities are not as advanced as some of its competitors. It offers basic metrics, but does not go into as much detail as some of the other platforms, specifically with regards to engagement.
For example, users upvote and downvote on Reddit to express their approval or disapproval on a post, but this data is not available to view on the Reddit dashboard unless you are an admin. This would be important information for hands-on keyboard execution partners to have.
The Reddit dashboard only displays six months of data, so you are unable to see spend and performance for campaigns longer than 6 months ago. Because of this, we recommend Reddit campaigns run for less than 6 months.
Best practices for advertising on Reddit
- Utilize community targeting and interest targeting in each ad set. When testing interest targeting vs. community targeting, we have found that community targeting tends to perform more efficiently when it comes to CTR than interest targeting, but combining interest targeting and community targeting in one ad set outperformed both.
- Conduct research on the communities you would like to target. Look to see if these communities have many active members and what they discuss. Use this information to tailor your creatives to these users’ interests.
- Use creative that feels authentic to your audience. Users of Reddit appreciate advertisers to meet them where they are.
- Utilize both placement options (conversations and feed) at the ad set level in order to diversify where your ad will be seen.
Reddit is an excellent platform for reaching niche audiences at a relatively low cost. The platform is not as sophisticated as some of the others, but the ad performance on Reddit speaks for itself. If you are looking for a new platform for paid social, do some research on subreddits that your target audience may identify with and give Reddit ads a try.