Reddit is shaking things up for advertisers with the introduction of a brand-new ad format on Thursday. As the company gears up for its highly anticipated initial public offering (IPO), it is aiming to catch the attention of advertisers and boost user engagement with its latest offering. The new ad format, known as free-form ads, is designed to mimic the posts that users create on the platform, creating a seamless experience for both users and advertisers alike. While this may seem like a win for businesses, it may not be met with the same enthusiasm from Reddit users.
Using the free-form ad format, advertisers have the opportunity to combine various media types, such as images, videos, and text, with the help of ready-made templates. According to Reddit, these ads were inspired by one of the platform’s most popular post types, the megathread, which serves as a hub for discussions on trending topics. Just like megathreads, free-form ads provide a quick and efficient way for users to obtain relevant information. This makes it an ideal format for things like product launches or introducing a new brand to a larger audience.
Similar to other ads on Reddit, users will be able to distinguish between free-form ads and regular posts by the inclusion of a “Promoted” label next to the company’s name.
During initial testing, Reddit found that free-form ads had a 28% higher average click-through rate (CTR) compared to other ad types, and also saw increased community engagement when comments were enabled.
“Free-form ads give advertisers the freedom to create an ad in any format, utilizing multiple media types, while maintaining a native feel to the platform,” stated Jim Squires, Reddit’s EVP of Business Marketing and Growth, in a blog post. He believes that this format will encourage brands to showcase a mix of content, context, and creativity, resulting in strong performance and brand awareness.
This new ad format is now available to all advertisers on Reddit worldwide through the Reddit Ads Manager.
This announcement follows the recent launch of Reddit Pro, a suite of tools designed to help businesses grow their organic presence on the platform. It is clear that Reddit is striving to attract more brands and potentially convert them into paying advertisers. This is a significant move, as it marks the first time that Reddit has offered free tools to assist businesses with their social media strategy. Overall, this new ad format is an exciting development for both advertisers and Reddit users, and we can only anticipate the impact it will have on the platform.
