Reddit is introducing a new ad format that resembles posts made by users on the platform, the company announced Thursday. The announcement comes as Reddit prepares for an initial public offering (IPO). A new ad format called freeform ads is designed to make users feel like the content they share with each other, helping advertisers maximize engagement. While the new format may be attractive to advertisers, ads that look like regular posts may be an unwelcome addition to users.
Advertisers can use this format to combine multiple media types such as images, video, and text using ready-made templates. Reddit says the ad format is inspired by megathreads, one of the platform's most popular post types, which provide a one-stop shop for discussions about popular topics. Similar to megathreads, free-form ads are intended to help readers get the information they need right away. The company says this new ad format is a great way to launch products or introduce brands to new audiences.
As with other ads on Reddit, users will be able to differentiate between freeform ads and regular posts by the “promote” label that appears next to the company name on the post.
Image credit: Reddit
In early testing of the new format, Reddit found that freeform ads had a 28% better average click-through rate (CTR) than all other ad types, and also increased community engagement when comments were enabled. I discovered that.
“Freeform ads allow advertisers to use multiple media types and create ads of any length with a platform-specific look and feel,” said Jim Squires, VP of Business Marketing and Growth at Reddit. It gives you the flexibility to build,” he said in a blog post. . This format fosters a combination of branded content, context, and creativity to drive strong performance and brand awareness. ”
The new ad format is available to all advertisers on Reddit worldwide through the Reddit Ads Manager starting today.
Today's announcement comes days after Reddit introduced a suite of tools called Reddit Pro to help businesses grow their organic presence on the platform. Reddit is likely looking to add more brands to its platform and perhaps turn them into paid advertisers. The launch marks the first time Reddit is offering free tools to help businesses with their social strategies.