Reddit Ads

Reddit Ads: Underrated Source for Targeted Marketing9 min read

Reddit may not be the first name you think of when planning an ad campaign — but it should be. With over 70 million daily active users, countless niche communities, and topic-focused targeting, Reddit offers a unique and highly engaged environment for marketers. 

And it’s not strictly B2C or B2B. On Reddit, you can find people from both spheres and promote your products to them. 

Should You Advertise on Reddit?

Let’s not walk around and get straight to the point. Should you advertise on Reddit? Yes — if you want laser-focused targeting, high engagement, and cost-effective reach.

Reddit is an advertisers’ dream come true. Its community-driven structure allows brands to connect with passionate, topic-specific subreddits where users are actively discussing specific topics. You don’t have to guess if people’re interested in the niche, they’re already interested in it.

Take a look at what’s possible:

1) Ulta Beauty used Reddit’s Dynamic Product Ads to get better results from their ads. They saw a 66% higher ROAS, x9 ROAS growth on Thanksgiving, and a 34% boost after the holidays. (Source)

Ulta Beauty used Reddit’s Dynamic Product Ads

2) Mars improved their ad strategy on Reddit and got great results — 194% better ROAS than their goal and 145% better ROAS than last year by connecting with active Reddit communities. (Source)

Mars improved their ad strategy on Reddit

Why Reddit Ads Work

  • Granular targeting – Target by subreddit, interest, keyword, location, device type, or even user activity.

  • Community-driven engagement – The comment section isn’t just for replies—it’s for real conversations and brand building.

  • Cost-effective reach – Lower CPCs than other platforms (often as low as a quarter of Facebook’s) with a second-price auction system.

  • Brand awareness & authority – Engage in authentic dialogue and build long-term brand equity.

Potential Risks of Reddit Ads

Reddit Ads can be effective, but they may not suit every campaign. Here are a few limitations to keep in mind:

  1. Best for niche targeting – Reddit ads perform best when targeting specific communities. If you’re looking for broad, automated targeting, other platforms might be a better fit.

  2. Moderation is necessary – Since Reddit allows comments on ads, you may need to actively moderate or disable comments to avoid potential issues.

  3. Bot traffic – Some advertisers have reported higher rates of bot traffic, particularly on larger subreddits. Limiting your ads to smaller, more focused communities can help reduce this problem.

Who Uses Reddit?

Understanding Reddit’s audience helps you craft a better campaign.

Reddit attracts over 365.4 million weekly visitors and is home to more than 100,000 subreddits. It’s one of the internet’s most active communities.

Key Demographics

  • Age: Primarily 18–34, with a strong segment up to 50

  • Gender: Predominantly male (61.2%), but female representation is growing

  • Location: 49.59% of users are from the US, a.k.a. 394 million people.

  • Education: Majority have a college education

  • Hobbies: Gaming, music, memes, education — according to the most popular subreddits 

Even though many users just scroll, they’re still highly engaged. On average, people spend 20 minutes on Reddit — and that number grows the longer they’ve been on the platform. Users who’ve been registered for 7+ years, for example, spend ~45 minutes daily.

Pro tip for targeting: Start by researching the subreddits your target audience frequents. Make notes on the tone, language, and user preferences, it’ll help you make ads more native and better received.

What Ad Formats Does Reddit Ads Have?

Reddit Ads offer a common list of ad formats. This includes images, video, text and carousel. Here are examples of how they look like: 

1) Text Ads

Clean, simple, and great for brand awareness.

Text Ads on Reddit

2) Image Ads

Add eye-catching visuals and CTAs — similar to Facebook or LinkedIn.

Image Ads on Reddit

3) Video Ads

Great for storytelling, product demos, and testimonials.

Video Ads on Reddit

4) Carousel Ads

Multiple images users can scroll through—perfect for showcasing products or features.

Carousel Ads on Reddit

5) Conversation Placements

Ads appear inside comment threads, right before the first comment—a powerful placement for discovery and discussion.

Conversation Placements on Reddit

Tips for a Successful Reddit Ads Campaign

Getting results on Reddit isn’t just about launching an ad — it’s about understanding the culture.

1) Define Your Goals

Start with a clear purpose: clicks, conversions, installs, or awareness? Your goal influences everything from ad copy to targeting.

2) Research Subreddits

Use Reddit’s search, third-party tools, and direct subreddit browsing to understand user interests, tone, and expectations.

3) Avoid Salesy Language

Redditors are notorious for sniffing out spam. Be genuine, helpful, and relevant. Use natural tone and clear value propositions.

4) Choose the Right Ad Format

  • Text Ads – Great for building brand awareness or promoting informative content

  • Image/Video Ads – Best for showcasing product features or testimonials

  • Promoted Posts – Boost top-performing organic content to gain more visibility

5) Optimize Bidding

Reddit’s second-price auction lets you win impressions without always hitting your max bid. Use manual bidding for control or automated for ease.

6) Use Ad Groups to A/B Test

Try variations of headlines, visuals, CTAs, and targeting settings. Kill what’s not working and scale what is.

7) Track and Improve

Monitor: Impressions, CTR, CPC/CPA, Conversion rate. Adjust based on performance. Reddit Ads Manager provides all necessary analytics to guide your optimization, or you can use Keitaro Tracker for a more advanced ad tracking.

8) Engage With the Community

Don’t just post — comment, respond, and interact. Engaging in meaningful discussions boosts trust and long-term returns.

How to Launch Ads on Reddit? Step-by-Step Tutorial

1) Create an Ads Manager Account

Create a Reddit Ads account (here). Fill out your business info to complete setup.

Reddit Ads Manager Account #1

2. Start a Campaign

Click Create Campaign. Choose Advanced Create for full features.

Reddit Ads Manager Account #2

3. Choose Your Objective

Pick from options like: Brand Awareness, Traffic, Conversions, Video Views, App Installs. For Conversions, you’ll need to install Reddit’s pixel for tracking and retargeting.

Reddit Ads Manager Account #3

4. Set Up an Ad Group

Ad groups let you organize and test ads with the same targeting and bidding.

Reddit Ads Manager Account #4

5. Target Your Audience

 With Reddit Ads, you can target:

  • Keywords that users recently searched for

  • Communities to target members of specific subreddits

  • Interest groups to target those interested in the topic (based on user’s content on the feed)
Reddit Ads Manager Account #5

6. Choose Ad Placement

Your ad can show up in:

  • Feed (Home, Popular, or subreddit feeds)

  • Conversations (top of comment threads)

Use separate ad groups for each if needed.

Reddit Ads Manager Account #6

7. Set Budget & Bidding

Choose daily or lifetime budget, automated or manual bidding, and schedule your campaign.

Reddit Ads Manager Account #7

8. Create Your Ad

Add headline, image or video, destination URL, CTA. Preview your ad before launching.

Reddit Ads Manager Account #8

9. Launch Your Campaign

Click Review, make final checks, and launch. You can add more ads to your ad group anytime.

Bonus Tip: What Not to Do

  • Don’t reuse Facebook-style ads.

  • Don’t post in subreddits you haven’t researched.

  • Don’t ignore the comment section — it’s part of the ad!

  • Don’t ghost after launching — optimize often.

Final Thoughts

Reddit Ads are one of digital marketing’s best-kept secrets. With ultra-specific targeting, affordable pricing, and a highly engaged audience, the platform offers a rare chance to connect with people who truly care.

If you’re ready to meet your audience where they hang out — and speak their language — Reddit could quickly become a powerful part of your ad strategy.

And once your campaign is live, don’t forget to track its performance. Keitaro Tracker makes it easy to monitor clicks, optimize results, and scale what works. Try it free and see the difference for yourself.

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Keitaro Team
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