Reddit is introducing a new form of advertising that looks like posts made by users on the platform, the company was announced on Thursday. The release comes as Reddit prepares for its initial public offering (IPO). The new ad format, called free-form ads, is designed to resemble content that users share with each other to help advertisers get maximum engagement. While the new format may be tempting for advertisers, ads that look like regular posts may not be a welcome addition for users.
Advertisers can use the format to combine multiple media types such as image, video and text with the help of ready-made templates. Reddit says the ad format is inspired by one of the platform’s most popular post types, the megathread, which is a sort of one-stop shop for discussions about popular topics. Similar to megathreads, freeform ads are intended to help readers get the information they need quickly. The company says the new ad format would be a good way to do things like launch a product or introduce a brand to a new audience.
Similar to other ads on Reddit, users will be able to differentiate between free-form ads and regular posts through a “Promoted” tag that appears next to the company name on a post.
Image Credits: Reddit
In early testing of the new format, Reddit found that free-form ads outperformed all other ad types in average click-through rates (CTR) by 28%, along with increased community engagement when comments were enabled.
“Freeform ads give advertisers the flexibility to create an ad of any length, using multiple media types, with a look and feel native to the platform,” said Jim Squires, EVP of Reddit Business Marketing and Growth. suspension. This format encourages a combination of content, context and creativity from brands, while driving strong performance and brand awareness.”
The new ad format is available today to all Reddit advertisers worldwide through the Reddit Ads Manager.
Today’s announcement comes just days after Reddit introduced a suite of tools, called Reddit Pro, to help businesses develop an organic presence on the platform. Reddit is likely looking to add more brands to its platform and possibly convert them into paying advertisers. The launch marked the first time Reddit offered free tools to help businesses with their social strategy.
