One Startups Experience With Reddit Ads

The “pretty rudimentary” platform has fewer options for targeting users compared to Facebook and Google, Groth said. But the company is able to go into more detail about its product on Reddit than it can on other platforms given the nature of the native ads, which helps the startup create some of its most engaging ad campaigns.

Last week, Reddit said it had updated its targeting tools to increase the accuracy and reach of interest categories.

For a few months this summer, Reddit was the top ad spend for Tab For a Cause, which also advertises on Facebook and YouTube. Groth declined to disclose the exact ad rates for Reddit or how much the company spent on the platform.

Currently, the company has been increasing its ad spending on Facebook and other platforms as it seeks a different kind of audience, Groth said. However, its ad volume on Reddit still competes with the number of campaigns they have on additional sites. On Facebook and YouTube, the audience appears to spend less time with an advertisement, and Groth said the response from those users feels like “more of a knee-jerk reaction.”

“A lot of the time on other platforms, we just say that this is a free, easy way to raise money for charity, and that’s kind of the end of it,” he said. “On Reddit, especially in the comment thread, we’ll have quite a fair amount of details about how much we’ve raised to date and what works.”

And the kind of users they get from Reddit are often more loyal to the product, Groth said.  

“When people do start using us from Reddit, we see that they’re very active users, they’re recruiting their friends, and overall they’re what we’d call ‘power users,’” he said. “By far, it’s the best advertising platform that we’ve been on in terms of what we’re getting for what we pay.”

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