Reddit’s New Ad Format — This Is How Reddit’s AI Ads Are Turning User Comments into Cash
Reddit’s New Ad Format: Just a week after Pinterest rolled out its AI-powered ad features, Reddit jumped into the game with some fresh ad tools at the Cannes Lions Festival. These new tools tap into Reddit’s unique community vibe, helping marketers make sense of all the buzz and connect with users in a more authentic way.
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The first tool, called Reddit Insights, gives marketers real-time updates on what’s trending so they can plan smarter campaigns and test their ideas before going all in. Reddit’s always been known for its wild and sometimes unpredictable conversations, but now marketers can cut through the noise and find the real signals that matter.
Another cool feature, Conversation Summary Add-Ons, lets brands showcase positive user comments right below their ads. It’s like giving ads a thumbs-up from the community, making them feel more genuine. Early tests with games company Jackbox and tech firm Lucid showed this led to almost 20% more clicks compared to regular ads.
Reddit’s COO Jen Wong told Axios that the platform’s ability to keep up with what’s happening in the world helps brands make smarter marketing and customer service decisions fast. She emphasized that Reddit’s new ad format isn’t just about advertising, it’s about relevance
With the digital ad space changing fast, brands want tools that help them reach audiences quickly and meaningfully. Reddit, Snap, and Pinterest are stepping up to offer more of these real-time tools, especially to help small and medium businesses get in on the action.
Even though big ad companies like WPP have lowered their growth forecasts because of economic and political challenges, Reddit is still expecting strong revenue growth this quarter — thanks in part to these new ad tools. This comes about a year after Reddit went public in March 2024.
What’s next? Reddit is working on Reddit Answers, an AI feature that will give smart summaries of conversations on the platform, making it even easier for brands and users to stay in the loop.