Reddit’s Strategy To Attract Advertisers: Interest-Based Targeting

As Reddit continues investing in its advertising platform, marketers and business owners can expect new ways to reach engaged audiences across various topics and communities.

In a recent episode of the AdExchanger Talks podcast, Jyotsna (Jyoti) Vaidee, Reddit’s VP of Ads Product, shared insights into how the platform is evolving to serve advertisers better while maintaining a positive user experience.

Authentic Conversations With Interested Consumers

One of Reddit’s key differentiators is its ability to facilitate authentic conversations among passionate users.

This presents a unique opportunity for marketers to connect with target audiences in a trusted and contextually relevant environment.

Vaidee highlights the potential for businesses to engage with interested users, stating:

“60% of Redditors actually want brands to participate in their communities and interact with them.”

By leveraging Reddit’s community-driven discussions, advertisers can deliver more targeted and impactful ad experiences that resonate with their desired demographics.

Reddit’s Interest-Based Ad Targeting

Vaidee discussed Reddit’s approach to ad targeting, which primarily relies on interest-based targeting derived from users’ interactions with content on the platform.

She mentioned moving towards auto-targeting, which leverages machine learning to analyze user behavior and deliver more relevant ads.

This means advertisers can reach audiences based on their demonstrated interests, even if those interests aren’t directly related to the advertiser’s product or service.

Vaidee states:

“On the targeting side… we have specific features we have launched, like keyword targeting. By our trajectory, what we’re moving towards is more and more, especially for the lower funnel specifically, is towards auto-targeting, and auto-targeting gives us the ability to not only build ****** on what we know about this specific user. But also, we’re learning and evolving as this user interacts with content on Reddit, as this user interacts with our ads, even.”

Vaidee gave the example of a yoga brand discovering that users interested in organic food are also likely to engage with their products.

Auto-targeting can help uncover these non-obvious connections, allowing advertisers to expand their reach effectively.

AI-Driven Advertising Solutions

Reddit heavily invests in AI-driven advertising solutions to help marketers achieve better results.

Vaidee emphasized the company’s focus on developing a full-funnel ad solution that leverages AI to enhance advertisers’ performance.

With the integration of AI capabilities, businesses can expect more advanced targeting options, auto-optimization of ad placements, and creative customization.

Vaidee states:

“We don’t have to make the same mistakes that I saw, you know, our other companies make, and then have to evolve and, you know, do, you know, migrations and whatnot to move towards this world of AI and Gen AI. I think we can quickly leapfrog to where we want to be. And I think technology, particularly Gen AI, is making it a more level playing field for smaller players.”

Expanding Ad Offerings While Prioritizing User Experience

As Reddit expands its ad offerings, it remains committed to ensuring a positive user experience.

Vaidee noted that Reddit balances monetization efforts with user controls and preferences.

Marketers can take advantage of new ad placements across various surfaces within Reddit, such as the feed, comments, and search results.

However, the platform also has user controls for ad categories like religious and political content, allowing individuals to tailor their ad experience.

This balance between monetization and user experience creates a win-win scenario for advertisers and Redditors.

Businesses can reach engaged audiences non-intrusively while users maintain control over the ads they see.

Measuring Ad Performance Across The Funnel

Vaidee discussed Reddit’s efforts to provide full-funnel measurement solutions.

The platform has launched features like Reddit Brand Lift and Conversion Lift, which help advertisers understand the impact of their campaigns on brand awareness and conversions.

Additionally, Reddit is working on integrating with advertisers more closely through third-party partnerships and the Conversions API (CAPI). These integrations will give advertisers more robust data to optimize their campaigns and measure ROI.

Vaidee states:

“We’re very focused on building for the full funnel of measurement. As you know, not too long ago, Reddit launched our Reddit Brand Lift, our in-house product, and we launched Conversion Lift. We are doing a lot in terms of integrating with advertisers more closely, whether through third parties or CAPI integration, so we can understand the signals better, which obviously translates to better performance and, you know, better measurement.”

Key Takeaways For Marketers & Business Owners

1. Reddit’s unique audience targeting capabilities allow advertisers to reach users based on their demonstrated interests, even if they aren’t directly related to the advertiser’s product or service. This can help uncover new opportunities for audience expansion and engagement.
2. The platform’s focus on facilitating authentic conversations within passionate communities provides a trusted environment for brands to connect with their target audiences. However, marketers should approach these communities with respect and aim to contribute value to the discussions.
3. Reddit invests heavily in AI-driven advertising solutions, which can help marketers improve targeting, optimize ad placements, and enhance creative customization. Staying informed about new AI-powered features can help advertisers remain competitive on the platform.
4. As Reddit expands its ad offerings, it remains committed to balancing monetization and user experience. Marketers should be mindful of this balance and aim to create non-intrusive ad experiences that align with user preferences.
5. The platform offers full-funnel measurement solutions, such as Reddit Brand Lift and Conversion Lift, to help advertisers assess the impact of their campaigns. Advertisers should use these tools and closely monitor their campaign performance to optimize for better results.
6. While Reddit presents exciting opportunities for advertisers, it is essential to approach the platform with a tailored strategy considering its user base’s unique characteristics and community dynamics. Marketers should invest time in understanding the platform’s ad offerings, targeting capabilities, and best practices to maximize their success on Reddit.

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