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Reddit’s growth has accelerated into 2025. In Q1 2025 the platform reached 108.1 million daily active users (up 31% YoY) – equating to roughly 400 million people weekly – with total revenue climbing 61% YoY to $392.4 million.
Ad revenues alone were $358.6 million (also +61%) that quarter. Major tech partnerships underscore this momentum.
For example, Google now pays Reddit around $60 million per year to integrate Reddit content into search results, and a new Google Cloud collaboration (using Vertex AI and Reddit’s Data API) will further enhance Reddit’s search and data capabilities. These moves improve Reddit’s visibility and data access, benefiting advertisers.
Importantly, Reddit’s value lies in its niche communities. Advertising on Reddit is not about massive broadcast reach but about targeted engagement.
By focusing on specific subreddits, brands tap highly relevant, passionate audiences. This often boosts ROI: “very targeted reach” and “active engagement” are key advantages of Reddit ads.
How can you take advantage of Reddit Paid Marketing? How can it help you create your brand image better than any other paid marketing? Keep reading, because this blog post will help you get a fresh perspective on everything!
Why Reddit, Why Now?
If you still think that reddit’s not going to change your brand’s metrics, then the future is dark.
Top brands are already hiring reddit marketers and that says a lot about the growing interest of users and the organic traffic going to the platform. But that’s not the only signal… Recent research from Ahrefs found that Reddit was generating the greatest gains in traffic across the top 10 visited websites:
Its also one of the most cited websites in the world via Google’s lates AI Mode:
Reddit’s surge in users and attention makes it impossible to ignore. It’s one of only a handful of sites with over 500 million accounts, and half of its users are 18–29 years old (about two-thirds are male).
But even beyond demographics, Reddit’s platform design makes it special. It’s a network of niche communities where members spend hours discussing shared passions. Users tend to trust the opinions of fellow Redditors (hence that Brandwatch stated above), and the Reddit approach (forum-style voting and threading) rewards authenticity.
Reddit itself calls the ethos: “Reddit comes first, and your brand comes second.” That means marketers must add value and play by the rules, or risk swift downvotes and bans.
What Ads Can You Run on Reddit?
Reddit offers several native ad units for feed and conversation pages:
- Image Ads: Single static image with a title and call-to-action (CTA) link. Best for simple messages or promotions.
- Video Ads: Short videos (15–60s) that auto-play muted in the feed. Include closed captions for sound-off viewers. Reddit advises mobile-friendly ratios (4:5 vertical performs best).
- Carousel Ads: Multi-card ads where users swipe through images or videos. Great for storytelling or showcasing multiple products in one ad. For example, a carousel can guide a user through steps or display a product line.
- Conversation Ads: Immersive ads that appear between comments in a discussion thread, enabling deep engagement in context. They let marketers ask a question and link it to a landing page, essentially turning the ad into a mini AMA. These are shown in comment feeds and can expand reach into highly engaged, “in-conversation” audiences. (Running Conversation Ads together with feed ads can even reduce effective costs – one reddit test showed ~12% lower CPA.)
- Dynamic Product Ads: A catalog-driven format that automatically serves personalized product images to users based on browsing behavior. For retailers, Dynamic Product Ads drove 2× higher ROAS in tests, showing each user the most relevant product from your catalog. This is ideal for prospecting or retargeting shoppers.
One of my favorite
How Do I Know What My Reddit Campaign Should Achieve?
The type of Reddit Campaign you need depends on your choice. You can practically run three types of campaigns which are as follows:
- Branding/Engagement: If your goal is awareness or community building, look at impressions, reach, and engagement metrics (upvotes, comments). Use Promoted Posts or Sponsored AMAs to generate conversation and brand visibility.
- Traffic/Leads: If you want clicks or leads, track click-through rate (CTR) and cost-per-click (CPC). Reddit’s CTR tends to be higher than Facebook’s (around ~1.8% on Reddit vs ~0.9% on Facebook), which is good.
- Conversions/Sales: If you want sales or sign-ups, set up the Reddit Pixel (more on that below) and track CPA/ROAS. Use a Conversion objective and monitor pixel events like purchases or form fills. Reddit’s revamped Events Manager will even break down conversions from the pixel and API together.
In short, define your goal up front. Then choose the ad format that fits (e.g. a carousel for showcasing products, a Sponsored AMA for trust-building) and the objective that matches your funnel.
Always tie performance back to your chosen goal – e.g. if you chose “Traffic,” optimize for link clicks; if “Brand,” optimize for views/impressions.
How Do I Find the Right Audience on Reddit?
The beauty of Reddit is laser-focused targeting. Start by identifying which subreddits your audience lives in. For example, a gaming brand might target r/gaming, r/pcgaming, or specific game communities.
HubSpot found that targeting specific subreddits worked far better than broad interest targeting.
Spend some time researching subreddits: check their subscriber counts, activity level, and rules about promotions. Then in the Ads Manager you can target any combination of subreddits that fit your niche.
Beyond subreddits, Reddit also supports interest and demographic targeting. You can target by user interests (based on what subreddits they engage with), location and device, and even schedule your ads for certain times of day. For example, if you’re promoting a local bakery, target by your city and by foodie subreddits. If you have a tech tool, target r/technology or r/startups.
In practice, a good strategy is: start narrow and test. Pick a handful of highly relevant subreddits and see how ads perform. You can always add interests or lookalike (custom) audiences later. And don’t forget to exclude subreddits that aren’t a fit (e.g. exclude r/memes if you’re serious B2B). The combination of subreddit targeting and standard filters means you can truly hone in on your ideal Redditors.
Setting a Reddit Campaign in 7 Steps
Setting up a Reddit Campaign is easier than you think. (And harder than you thought lol)
Here’s a step by step guide on how to create a paid campaign on Reddit:
- Account setup: Go to ads.reddit.com and sign in with a Reddit account. Create a new campaign, give it a clear name (stick to a naming convention if running many campaigns), and choose your objective (brand, traffic, conversion, etc.). Set your daily or total budget and bidding.
- Ad format & creative: Pick the ad type (as discussed above) that matches your goal. Craft an authentic headline and body text. Keep it short (under Reddit’s character limits) and genuine – Redditors value honesty over hype. Upload your images or videos.
- Audience & bidding: Select the subreddits and interest targets you identified. Choose location, device, and schedule if needed. Set your bid. For beginners, starting with automatic bidding can simplify things.
- Pixel integration (Tracking): Install the Reddit Pixel on your website (and events on important pages like checkout). Reddit offers a one-click integration with Google Tag Manager, so you can link your GTM container to Ads Manager and set up the pixel without coding. This lets you track conversions (form fills, purchases) accurately. Once set up, the Events Manager in Ads can show you all events (Pixel and Conversions API) you’re receiving, so you can verify your tracking is working.
- Campaign Import: If you already run Facebook/Meta ads, you can save time by using Reddit’s Campaign Import tool. It lets you securely import an existing Meta campaign (copying targets, budgets, creatives) in a few clicks. This is handy for SMBs to “lift and shift” what’s already working and then tweak it for Reddit’s audience.
- Review & QA: Before launching, double-check everything. Reddit’s new Campaign QA page shows all your campaign settings, ad copy, targeting, etc., in one place. Use it to catch any mistakes (wrong link, typo, unintended subreddit, etc.) and spot optimization opportunities. When it all looks good, launch your campaign.
- Launch tips: When your ads go live, monitor them closely at first. Check the first few hours for any obvious issues. As a rule, always align your ad assets with subreddit culture (e.g. use community-relevant imagery or slang). Keep naming and tracking consistent so you can compare easily. Finally, don’t forget to engage: turn on notifications for ad comments. If users ask questions or give feedback, jump in with helpful replies – this builds goodwill.
PRO TIP: Use Reddit’s Ad Analyzer
Let’s talk about the Reddit Ad Analyzer.
It is a smart tool that helps you understand how well existing and your own ads are projected to do:
It uses AI to analyze the ad and provide you with insight around whether or not they think the ad aligns with Reddit’s best practices.
Post Campaign: Measurement & Optimization
Reddit’s Ads Manager provides real-time analytics. Key metrics to watch include impressions, clicks, CTR, CPC, and for conversion campaigns CPA/ROAS.
You should also track native engagement: how many upvotes, comments, or shares your promoted posts get. (For reference, Reddit ads often get higher CTRs than other platforms – around 1.8% on average.)
Use these metrics to optimize:
- A/B Testing: Always run multiple ad variations. Test different headlines, images, or calls-to-action. Sodaspoon Marketing advises continuous A/B testing of creative elements and targeting to find the winning combination. For example, try the same message in two formats (text vs image), or target it to two similar subreddits to see which performs better.
- Creative Fatigue: Watch your CTR and engagement over time. If performance drops, refresh your creative. In Reddit’s fast-moving subreddits, what worked last month may start to feel stale. Rotate images, tweak copy, or try a new ad format to keep things fresh.
- Compare Communities: If you run ads in multiple subreddits, compare results side by side. You may find some communities are far more responsive (higher CTR or conversion) than others. Reallocate budget toward the best-performing subreddits.
- Conversion Tracking: For sales or lead campaigns, review your pixel data. Reddit’s updated Events Manager breaks down all conversion events from the Pixel and Conversions API. Ensure your Pixel is firing on the right pages. Use these signals to adjust bids and audiences (e.g. if certain events aren’t firing, you might need to refine your event rules).
- Qualitative feedback: Pay attention to comments under promoted posts. Redditors often give candid feedback. If you spot misunderstandings or questions, update your ad copy to address them. Engaging with comments can itself boost an ad’s visibility as users interact.
Paid + Organic Synergy For Reddit Marketing
Don’t think of paid Reddit campaigns in isolation – combine them with organic tactics.
Reddit’s own guides stress that paid and organic should be “partners in crime”.
Here are a few ways to mix them:
- Boost top organic posts: Reddit specifically suggests “boosting high-performing organic posts” by running a small paid campaign to amplify them. This way you’re promoting content already proven to resonate.
- Host & sponsor AMAs: Pair a live AMA (organic event) with an AMA ad. You can announce a session (e.g. “Our CEO will be answering questions in r/marketing on Friday!”) and then promote that announcement as a paid post.
- Engage in comments: As your ads run, keep engaging in the communities organically. If people ask questions under your Promoted Posts, answer them promptly. If your brand is mentioned elsewhere, join the conversation.
- Cross-channel promotion: Use your Reddit posts in other channels and vice-versa. For example, highlight a successful Reddit thread in your newsletter, or use an email list to invite people to an upcoming AMA.
By blending paid ads with real participation and user-generated content, you create a much more powerful marketing engine.
5 Best Practices for Reddit Ads to Boost Your Conversions
Here are 5 best practices you can’t afford to ignore:
First up… Know the subculture.
Reddit isn’t like other ad platforms — each subreddit has its own vibe, language, and expectations. That means you need to study the subreddit before jumping in. Read the rules. Analyze the top posts. Understand how people communicate. Then tailor your ad copy and behavior accordingly. If your ad feels out of place, it’ll get ignored — or worse, downvoted into oblivion.
Next… Ditch broad targeting.
Reddit thrives on specificity. Instead of casting a wide net like “fitness,” narrow your focus to specific communities like r/Fitness, r/BodyweightFitness, or r/running. This approach helps you connect with people who are already primed for your message. The more niche your targeting, the more relevant (and effective) your ads will be.
But what about the creative itself?
You’ve got to go native. Your ads should blend into the feed while still grabbing attention. Use headlines under 150 characters and lead with clarity, not clickbait. Pair your copy with eye-catching, relevant visuals. Whether that’s an image or short video. Most importantly, keep your tone friendly and conversational. Redditors can sniff out hard-selling tactics a mile away.
Now here’s where most advertisers slip up… Tracking.
From the very beginning, install the Reddit pixel using Google Tag Manager. This lets you monitor what matters — purchases, form submissions, downloads — and ensures you can optimize for real business outcomes, not just vanity metrics.
Finally… Don’t get lazy.
Reddit isn’t a “set it and forget it” platform. You need to test constantly. Run A/B versions of your ads. Rotate creative often to avoid ad fatigue. Then dive into Reddit’s native analytics — track metrics like CTR, CPC, and CPA across different subreddits to spot what’s working and where to scale.
FAQs on Reddit Paid Marketing
How much do Reddit ads cost?
You can start very small.
Reddit allows budgets as low as $5 per day. The average costs (CPM/CPC) are generally lower than on Facebook, but it depends on targeting.
What ad formats should I use?
Promoted Posts (text/image ads) are the core format.
Beyond that, try Video Ads (autoplay in-feed), Carousel Ads (swipeable image galleries), Image Ads, and Product Ads (rich ecommerce ads).
How do I target the right Redditors?
Use subreddit targeting above all. Choose specific subreddits that match your niche (e.g. r/PersonalFinance for finance offers).
How do I measure if my Reddit ads are working?
Reddit’s Ads Manager shows you impressions, clicks, CTR, CPC, etc. It also shows engagement (upvotes/comments) on Promoted Posts. Install the Reddit Pixel to track conversions (sign-ups, sales) on your site.
Conclusion on Paid Reddit Marketing
Reddit isn’t just a place for jokes and memes anymore. It’s now a powerful platform where smart brands connect with real people in real communities.
If you want better results from your ads, Reddit can help you reach the right audience, in the right way. Just remember: be honest, follow the rules, and speak like a human — not a brand.
If you want help getting started or improving your Reddit ads, Foundation Marketing is here to help you out.
Click here to book a call with a Reddit Specialist today!