How Marketing And Advertising Works On Reddit For Businesses

Reddit recently reported its first ever quarterly profit after nearly two decades, recording £22 million in earnings with revenue reaching £273 million, a 68% increase from the previous year. This comes after an extended period of losses, including a £443 million deficit during its initial public trading period, which later went down to £7 million.

Daily user numbers have gone up to nearly 100 million, and a big part of this rise might be due to the new AI-powered translation feature that now allows posts to reach audiences in multiple languages. Reddit plans to grow these translations across over 30 countries, creating even more access.

Revenue growth has also been driven by licensing agreements with companies such as Google and OpenAI, who use Reddit content to develop AI models. Advertising agreements with major partners, like the NBA, have also added a lot of value.

CEO Steve Huffman shared that Reddit has become one of the top search terms on Google, which speaks to its positioning as a hub for community discussions and reliable answers. Reddit’s upcoming initiatives focus on continuing to connect users and maintaing its position as a central space for engagement and information online.

Why Should Businesses Market On Reddit?

With the platform finally being profitable, and the growing number of users, Reddit may be a good option for brands after all. Also, recent changes to Google’s algorithm have elevated Reddit’s visibility in search, drawing attention to the platform as a valuable space for brand engagement. As Reddit is home to a range of communities, brands can connect with people who seek honest recommendations and in-depth discussions about products.

With over 100,000 active subreddits, Reddit provides a way to reach users interested in specific topics. Unlike other platforms where users scroll through content, Reddit encourages active engagement and conversations, making it an attractive space for brands wanting meaningful interactions. About 90% of users trust Reddit as a source for product information, which is higher than other major sites.

The loyalty shown by Reddit’s audience toward brands that actively participate and engage has made it a powerful space for businesses. Redditors, known for their preference for genuine interactions, reward brands that fit in with the platform’s open and honest style.

What Are The Advantages Of Using Reddit Ads?

Reddit Ads reach a large and highly involved audience of over 365 million users weekly, active in niche communities across the platform. Brands benefit from multiple ad formats, including promoted posts, conversation ads, and more prominent placements like takeovers. Each option helps brands share messages that feel natural to the community while reaching people open to learning about new products.

One of Reddit’s strengths is its community-specific targeting. Brands can place ads in subreddits where users are already discussing topics relevant to their products or services. This gives advertisers a chance to reach audiences with a higher likelihood of interest and engagement.

Each Reddit ad option supports a range of objectives, from building awareness to driving conversions. Through ad formats that align with the platform’s culture, brands report better engagement and lower costs per click compared to other sites, as Redditors appreciate ads that feel genuine and in sync with their interests.

How Can Brands Engage Organically On Reddit?

Effective engagement on Reddit means treating it like a community, not a marketplace. Brands that try to use Reddit as a platform for direct sales usually face resistance, as users are quick to reject anything that feels forced. The brands that succeed here focus on adding to discussions and connecting in authentic ways.

Certain companies use Reddit to connect with users directly, and brands like Corsair and Taco Bell have created dedicated subreddits. These spaces allow companies to answer questions, share updates, and speak with users directly, reinforcing a sense of openness that Reddit users value.

For brands looking to build a stronger presence, hosting an “Ask Me Anything” (AMA) session is an excellent option. Through AMAs, brands can field questions from the community in an open format, building trust and letting Reddit users learn about products in a conversational way. AMAs give brands a chance to show personality, answer real questions, and foster stronger connections.

What Types Of Content Work Best For Reddit Marketing?

The types of content that perform best on Reddit are those that engage without overt promotion. GIFs, images, videos, and AMAs often draw the most interest, with users responding well to entertaining or useful material. Carousel ads, which let brands display multiple images or videos in one post, provide an engaging format for users exploring new products.

Redditors tend to dislike overly promotional content. Successful brands keep this in mind, creating posts that inform, entertain, or support the community’s tone. Humour, relatability, and transparency make a difference, helping brands feel like a natural part of the conversation rather than an outside promoter.

Every ad format on Reddit serves a purpose, whether it’s building interest through carousel ads or sparking conversations through AMAs. By customising content to Reddit’s community preferences, brands can create connections with users that lead to loyalty over time.

How Should Businesses Use Reddit For Market Research?

Reddit’s open discussions give brands insight into what people are saying about products, trends, and competitors. Listening to conversations across subreddits allows brands to learn about user preferences and reactions. Social listening tools like TrackReddit are also helpful in monitoring real-time conversations, letting brands stay updated on relevant discussions that can inform their approach.

Interacting in subreddits related to their industry gives brands another way to gain insights. For instance, a tech company might engage in communities around gadgets or apps, where users actively discuss the latest tech trends, providing feedback and thoughts on product features they’d like to see.

Businesses that interact directly with Redditors can also gain unfiltered input from their target audience. Whether through AMAs, participating in discussions, or reading posts, brands gain a first-hand look at customer preferences and needs, helping them make informed decisions based on real-time feedback.

What Are The Best Targeting Options For Reddit Ads?

Reddit ads have flexible targeting options, allowing businesses to reach audiences based on interests, subreddits, keywords, and retargeting. This setup lets brands place ads within subreddits or conversations where users are already discussing related topics, making ads more relevant to each audience. The different ad types are:

Promoted Posts– these ads look organic on Reddit feeds, but are tagged as “Promoted,” and can have text, media (either linked or uploaded), or links to websites.

Video Ads– autoplay videos appear in users’ feeds, capturing attention instantly and are great for visually engaging content.

Carousel Ads– this format displays a number of images or videos in a swipeable post, making it ideal for showcasing more than 1 product or stories.

Conversation Ads– appearing under posts before comments, these ads invite users to start a conversation directly with the brand.

Product Ads– shopping-focused ads show product details within the ad so users can quickly see what’s available.

Ask Me Anything Ads– AMAs let brands engage directly with the Reddit community in an open Q&A format, building trust through interaction.

High-Impact Takeover Ads– these ads secure prime placements on popular pages like the Reddit home page or in specific categories for maximum visibility.

Brands can also place ads in interest-based subreddits, so that they connect with people genuinely interested in the topic. For example, a wellness brand can target fitness subreddits, while a skincare company can focus on beauty and skincare communities. This method makes for better ad relevance, so users are more likely to interact with content that aligns with their interests.

Blending targeting strategies can improve ad performance. Putting together interest and community-based targeting allows brands to appear in both large and highly focused groups which in turn grabs the attention of different types of users. Retargeting also gives brands a chance to reach users who have already engaged with their site or content, helping them stay connected with possible customers.

How Can Brands Build A Successful Reddit Profile?

A strong Reddit profile starts with a relatable username, an engaging profile, and consistent participation. Brands that interact on Reddit as if they’re part of the community build trust faster. Companies like Taco Bell maintain a personal touch, using informal language and humour that make them more relatable.

Regular engagement is key for building credibility. Brands that actively reply to comments, answer questions, and contribute valuable information see better results. Reddit’s culture rewards transparency, so users are more likely to follow and interact with brands they perceive as trustworthy and invested in the community.

Reddit is informal, so it’s best for brands to avoid corporate language. Using casual words, sharing experiences, and speaking directly can help humanise a brand. This lets brands become a part of the community rather than standing out as outsiders, and over time, they can earn a reputation as a genuine presence.

What Are Some Examples Of Effective Reddit Campaigns?

A number of brands have achieved success with Reddit campaigns through thoughtful engagement and creative ad formats. Adobe’s strategy on Reddit involved creating ads that felt like they belonged on the platform, which resulted in 3 times the engagement of their other channels. Ulta Beauty’s product ads also saw success, increasing their return on ad spend by 66% compared to previous campaigns.

KFC has also used Reddit for community engagement by running contests and joining in on humour-driven posts. This strategy earned KFC positive responses from users, who appreciated the brand’s willingness to join discussions in a lighthearted and relevant way.

Other brands, like Taco Bell, benefit from organic fan engagement. Through a dedicated subreddit, Taco Bell interacts with users who share product recommendations, ask questions, and celebrate their experiences. These examples show how brands can connect effectively on Reddit, building connections that go beyond simple advertising and create lasting relationships with users.