Reddit - a platform for niche communities, political discussion, and more memes that you can shake a stick at. In other words - platform that’ll never be a key part of your ads strategy. Right?

Wrong. Reddit ads have come a long way in recent years, and continue to grow in functionality, popularity, and results.

With over 500 million users, reddit has quietly become one of the biggest social media platforms on the internet. It’s up 150 million users since 2019, which also makes it one of the fastest growing platforms in terms of sheer users.

The takeaway: No matter what industry you’re in, there’s a high chance your audience uses Reddit.

With lower CPCs than the mainstream platforms, high ad engagement potential, and the ability to hyper-target any community - it’s no surprise that marketers looking to drive conversions and improve ROAS are flocking to Reddit. 

Looking to get in on the fun, or want to brush up on the latest reddit ad strategies? Then this guide is for you. Expect to learn:

• Whether or not Reddit ads are likely to work for your business
• Best practices to maximize ROAS on Reddit
• How to directly target your audience on the platform to increase sales
• Tips & tricks to succeed on Reddit
• Case studies that dissect some of the most successful Reddit ads

Should I advertise on Reddit?

Reddit boasts some of the highest user engagement levels on the market. Exceeding 57 million daily active users, Reddit works to foster a community-driven environment built around specific interests. 

This makes Reddit a goldmine for marketers seeking to target niche audiences with laser precision. 

The stats are impressive, with many brands seeing impressive results from hyper-targeted marketing on the platform. Just take a look at these stats, collated by MyCodelessWebsite:

• Mitsubishi Motors Canada used Reddit Ads to increase unique website visitors by 99%
• Austria’s World Heritage Site, The Belvedere, increased web traffic by 277% using Reddit ads
• Discover Financial Services increased mobile click rates by 256%, with a 22% lower CPC than expected
• Overall, Reddit ads achieve 2.8x higher ad recall than other platforms on average
• Reddit advertisers increase brand favorability by 38% on average

Source: Reddit

Businesses that know how to use Reddit ads to their full potential can achieve incredible results. The platform boasts a range of unique advertising features that other platforms simply can’t provide. Here's why you might want to make Reddit advertising a key part of your marketing strategy:

• Granular Targeting - Reddit's ad platform allows for granular targeting based on demographics, interests, subreddits (niche communities), and even keywords within posts. When set up properly, this can ensure your message always reaches the eyes of your customers. For B2B advertisers, Reddit can be a powerful tool for targeting qualified professionals actively seeking information relevant to your industry.

• Community-Driven Engagement - Unlike traditional advertising, Reddit fosters genuine two-way communication. You can leverage the comments section to address questions, build trust with potential buyers, and position yourself as a thought leader within your industry. 

• Cost-Effective Reach - Compared to other platforms, Reddit Ads can offer a relatively cost-effective way to reach your target audience. You can set daily budget caps and use a second-price auction system, ensuring you only pay what's necessary to get your message in front of your audience. 

• Brand Awareness and Authority - Strategic use of Reddit Ads can elevate your brand image within relevant communities. By participating in discussions with your audience and providing valuable insights, you establish yourself as a trusted resource. This is exactly what’s needed for fostering brand awareness and building long-term relationships - which brands often fail to realize. 

Potential limitations of Reddit ads 

Reddit can be a seriously powerful tool for brands. However, there are some scenarios where Reddit ads fall short vs. other platforms. 

Before fully committing to Reddit ads, take a look at the following to decide whether they’re the right fit for you:

• Highly Suited for Specific Targeting - Reddit ads excel when you target the communities who may be interested in your products. By doing your research and focusing on the specific subreddits related to your product, you’ll see far better results. If you’re looking for a highly-automated, blanket-targeting platform - you might want to look elsewhere. 

• Moderation Usually Required - Reddit allows users to comment on ads, potentially opening up a two-way conversation which could lead to increased conversions. This means you’ll have to moderate the comment section under your ads, or disable comments completely. 

• Bot traffic - One reddit user, polygraph-net, left a comment stating they saw higher than usual rates of invalid traffic on their Reddit ads:

“We tested Reddit Ads with around $1,000, and roughly 80% of the clicks were from bots. We repeatedly tried to talk to Reddit about this, but they either dismissed the issue or ignored us.”

Worrying statistics - however they went on to mention that this number is reduced with more specific targeting.

“We found if you limit your ads to small subreddits, you'll get fewer fake clicks, as the smaller subreddits have far fewer bots.”

This further signifies the importance of specific targeting on Reddit. Do your homework, target the niche subreddits that are most likely to be interested in your product, and you’ll avoid some of the traffic bots plaguing the main subreddits. You'll also see higher engagement rates and improved ROAS - but more on that later.

To get the most out of Reddit whilst avoiding bot traffic, ensure you have an invalid traffic prevention system (*cough* Lunio *cough*) in place to prevent bots and other sources of fake traffic from impacting your ad spend. This goes further than just Reddit - IVT protection software can cut wasted ad spend across all major platforms, ensuring your ads are only seen by real users.

How to build a successful Reddit ads campaign

Here's everything you need to consider when setting up a Reddit ad campaign, along with some key tips to maximise sales and drive ROAS on the platform:

1. Define Your Goals - The first step is to identify your specific campaign objectives. Are you looking to drive website traffic, generate leads, increase brand awareness, or establish thought leadership? Each goal requires a tailored approach in terms of ad copy, targeting, and campaign bidding strategies.

2. Do Your Research - In-depth audience research is crucial for Reddit advertising. Identify which subreddits your target audience frequents, understand their online behavior, and tailor your messaging accordingly. Tools like Reddit Keyword Targeting allow you to hone in on specific keywords within posts, ensuring your ads appear alongside discussions most relevant to your ideal customer profile.

3. Your Existing Ad Copy Probably Won’t Cut It - Reddit users are known far and wide for their aversion to inauthentic marketing. If you’re in love with sales jargon, it’s time to break up. Focus on creating informative and engaging ad copy that addresses their specific needs and challenges. Be straightforward, highlight the value proposition of your product or service, and leverage visuals that resonate with the community aesthetic.

4. Select the Right Ad Format - Reddit Ads offers a variety of formats to suit your needs. Here are some popular options:
   • Text Ads: Perfect for driving brand awareness and website traffic with concise, targeted messaging.
   • Image Ads: Leverage quality creatives to showcase your product or solution.
   • Video Ads: Consider short explainer videos or customer testimonials to create a more integral experience. Bonus points if you can specifically tailor your videos to your Reddit audience (see an example of this below)
   • Promoted Posts: Elevate existing high-performing organic content within relevant subreddits, allowing you to tap into existing community discussions.

5. Optimize Your Bidding Strategy - Reddit utilizes a second-price auction system, where you set a maximum bid for each impression (view) or action (click, conversion). Choose a bidding strategy that aligns with your goals – manual bidding allows for more control over spend, while automated bidding can be effective for optimizing conversions within a set budget.

6. Create Your Ad Group - A/B test on Reddit with ad groups. An ad group is a collection of ads running under the same targeting, placement and bidding options. This allows you to test copy or creatives against another to find what works best. 

7. Track and Analyze Performance - Closely monitor your campaign performance through Reddit Ads Manager. Analyze metrics like impressions, clicks, conversions, and cost-per-acquisition (CPA) to identify what's working and what needs adjustment. A/B testing different ad variations can help you refine your approach and maximize ROI.

8. Engage with the Community - Don't underestimate the power of community engagement. Respond to comments on your ads, participate in relevant subreddit discussions, and offer valuable insights where appropriate. Building trust and fostering genuine connections are crucial for long-term success on Reddit.

Bonus tip: Looking for what not to do? Take a look at this post from Reddit user 17_character_limit outlining the key user grievances with ads on the platform:

There's some important takeaways here - generic ads without contextualization or understanding of Reddit do not appeal to users on the platform. In order to appeal to Redditors, you must think and act like a Redditor.

When in doubt, always start with the three key commandments of Reddit marketing:

1. Understand thy platform - Explore what types of posts work well, appeal to users, and showcase your brand in the best light. Lighthearted, simple, or humorous posts usually perform best.
2. Understand thy subreddits - Find where your audience exists, and discover what’s popular in your target communities.
3. Understand thy audience - What’s your audience discussing on the platform? What are their pain points, what do they like/dislike?

By following these key principles first and foremost, you’ll be able to generate more sales from the platform, and increase overall Reddit ROAS.

How to target effectively on Reddit

We’ve already spoken about the importance of targeting subreddit niches on Reddit. But what ad types exist, how do they work, and how can you tailor your ad types for maximum conversions? Let’s take a look:

Targeting Options - Reddit’s targeting options are relatively in-depth, and include several targeting options:

• Reddit audience
• Retargeted audience (Use Reddit’s pixel to create these) 
• Custom audience - created using imported data, e.g. emails
• An audience of people who have previously engaged with your ads on Reddit but haven’t yet made a click or conversion. 

The ‘Reddit Audience’ option is what most campaigns use - however the other targeting options shouldn't be dismissed. Choose based on your campaign goals, and consider custom audiences depending on the extent of your existing first-party data.

Under ‘Reddit Audience’,  you can target: 

• Individual Subreddits - This is what we’d recommend, as doing your research before committing to ad targeting will provide the greatest results. By finding the subreddits closest to your product, you're far more likely to hit your target audience and see greater results.
• Broader Interest Areas - This allows you to select wider areas of interest, and lets Reddit decide where your ads should be shown across the platform. Most brands will want to avoid doing this, as it can lead to high rates of invalid traffic and low conversions.

Once you’ve selected the targeting type, you can then: 

• Target or exclude people in specific locations - Use this to exclude countries or areas where your product isn’t available or relevant. 
• Target or exclude specific device types - Do this if you’re creating multiple ad types - e.g. different formats or creatives for mobile vs. desktop. 
• Exclude custom audiences - Use this to exclude audiences who have already converted or definitely won’t convert. 

Reddit ads: Placement types

Then, select your placements. You’ve got two options here - Conversations or Feed. 

Feed means your ads will be shown in the regular post feed. This can be: 

• Home (the homepage of Reddit, where users see content tailored to their interests)
• Popular (where users see everything that’s popular across all of Reddit)
• Specific subreddits (individual communities discussing a topic - target the subreddits closest to your product for best results)

Conversations show your ads underneath related user posts. These ads will be displayed as the top comment, above user comments.

Case study 1: Škoda 

If you’re looking for an example of how to do advertising on Reddit, look no further than Škoda. 

In 2024, Škoda announced their fourth-generation Skoda Octavia model. Their ad campaign saw Reddit users quite literally ‘take the wheel’.

The campaign, ‘You Said It’, focuses on the community discussion around the car, letting Reddit users lead the discussion. The campaign uses quotes from the popular car subreddit, r/CarTalkUK, praising the previous generation Octavia.

Kirsten Stagg, marketing director, Škoda, commented on the campaign, “The Octavia is a quietly brilliant vehicle in our range, and I’m so pleased we’ve found the right way to celebrate it.

Harnessing the power of fandom can be a tricky thing, but this campaign has shown us how to engage fans in the right way: using them not just to build our credibility but also to deliver a creative and original campaign that is bang on Škoda’s human tone-of-voice."

They also played into the Reddit community, offering a number of users the chance to test drive the new Octavia before launch. 

That’s not all - they also enlisted Reddit to help them spec a ‘Reddit edition’ of the car. They used Reddit ad space to take votes from the community on the color, spec, and overall design of the car. 

Why this works: 

• Škoda directly targeted the communities closest to their product
• They engaged with the community, and got them involved with interactive ads
• They played on the community’s existing messaging around their product
• The community were directly involved in the product, and were given agency over certain elements of the campaign

Case study 2: HelloFresh

Similarly, this ad from HelloFresh is a perfect example of how to tailor your ads for the platform. 

If there’s one thing Reddit is known for, it’s memes. By using creatives that add a touch of humor to your product or brand, you’re able to instantly connect with your audience. 

Notice how they’re specifically talking to the subreddit (r/recipe), outlining their value proposition in a simple, easy to understand way. 

Why this works: 

• Creative imagery that’s highly relevant to the platform
• Added humor for relatability
• Value proposition is clear and upfront
• Clear incentive and discount code to tempt users into converting

Making ad campaigns more efficient

Data shows that Reddit is particularly prone to selenium (webdriver) bots. These bots purposefully click on ads and waste ad spend, scouring the internet for information about ads, products, and pricing. 

As mentioned earlier, some users saw that up to 80% of the clicks on their Reddit ads came from these bots. 

This number can be reduced by specifically targeting smaller subreddits that see less overall bot activity - however, no matter how niche you get, the problem will always remain.

Fight back against bots wasting your ad spend and ensure only real users see your ads with Lunio. 

Our 14-day free trial shows you exactly how much of your ad spend is being wasted on bots, and lets you know how much you could save by blocking them.