Reddit expands the horizons for marketers—new doors opened!

Published: June 12, 2023

min read

In the wake of IOS 14 policy changes and many growing stringent privacy laws and the TikTok ban situation in the western market, businesses are looking to diversify their ad investments on multiple platforms to decrease their reliance on specific ones. Correspondingly, they are on the hunt for potential ad platforms to test out.

While it is undeniable that Reddit has evolved into a key product search engine for users over time, the company's ad business has also gradually grown. As a way of maximising its revenue potential, Reddit has been making headlines frequently in recent months.

And now, Reddit has announced the launch of two new advertising options: contextual keyword targeting and product ads.

Contextual Keyword Targeting:

Contextual keyword targeting can assist marketers in reaching a wider demographic of app users.

With Reddit already offering community, interest, and location targeting options as part of the ad setup process, this new element set will give users a greater ability to associate a wider range of keywords with the campaign.

Marketers can use related keywords in their campaign setup, which will result in the ads being presented to people who interact with those terms and discussions.

Product Ads:

Marketers will be able to target consumers who are already in the middle of their purchasing journey with this new ad format. To guide purchase activity, it will show details such as the description of the item and cost in local currency, as well as a 'Shop Now' CTA directing viewers right back to the advertisers' website.

According to Reddit, product ads can also be developed directly from a company's existing product catalogue, eliminating the necessity of extra creative resources and optimising the listing process.

How does it widen the opportunity for brands and marketers?

From allowing marketers to do niche-based targeting at a reasonable ad cost to maintaining a compelling brand story among customers and connecting with them at a personal level, Reddit has been significantly impactful for brands and marketers.

And, as we can see, the company's current push with its new ad capabilities is likely to gain traction among marketers and increase its ad dollars flow as it appears more promising.

Here is how:

Contextual Keyword Targeting:

  • Contextual targeting enables brands to target relevant audiences more easily with the right keywords. It also eliminates the need for them to only reach certain sub-reddits and expands the possibility of reaching broader audiences. By using this capability, marketers can ensure that their content is seen by high-value audiences who are genuinely interested in their products. It, in turn, is likely to enhance the chances of conversion.
  • Contextual keyword targeting paves the way for marketers to get an idea of keywords that resonate well with their audiences. Thus, by utilizing those words in their brand’s posts and comments, marketers can also drive organic reach and engagement. And it can significantly increase brand visibility among the target audiences.
  • By using the potential keywords, brands will be able to find and take part in relevant discussions. This can help them share valuable insights related to their industry and position themselves as trusted authorities among related audiences. This, in turn, can possibly result in positive brand perception and increased brand loyalty.

Product Ads:

  • As marketers can target audiences who are in a search mode or consideration phase via product ads, the chances will be higher for brands to reach the right audiences at the right time. It, in turn, will likely increase the chances of users clicking on the ad and boost CTRs and conversions.
  • As product ads are displayed on Reddit with prices, brands can clearly set expectations for users and filter out those who are not interested in buying that particular product in that price range. This way, brands can drive more qualified leads to their websites while reducing the potential drop-offs during the purchase process.
  • Marketers can gain valuable insights for optimization by monitoring the performance of product ads with price and CTA. By understanding the kind of messaging, CTAs, and products that work well among Reddit users, marketers will be able to make informed decisions about which products and campaigns to prioritize, well refine their targeting and strategies accordingly, and maximize the campaign's effectiveness.

In essence, we believe that Reddit's newly added marketing capabilities open a new door for brands to maximise their revenue potential. While the competition in the digital landscape grows by the day, keeping an eye out for new opportunities like this and exploring them early is critical to gaining a competitive advantage and finding the success formula faster.


Jasmine Jackson

Jasmine is a social media maven with a talent for building engaged communities. She's a natural storyteller and has a way of making complex ideas accessible to everyone. In her spare time, she enjoys reading, and exploring new cuisines.


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