Advertising on Reddit: Everything You Need to Know

Posted on November 3, 2022 in Blog

Graphic containing Reddit ad sign-up information.

Reddit ads are different from the creative you’ll find on other platforms. Reddit is social media for those who scoff at social media; Reddit users value community over commerce and guard their close-knit subReddits closely. Working with a Reddit advertising agency that knows how to speak to Reddit users and craft effective campaigns can help brands tap into this passionate, expert and hilariously snarky community.

Please note: Our agency recommends advertising on Reddit in conjunction with an organic Reddit marketing strategy, and a generous paid media budget for other platforms.

How to Run Ads on Reddit

Brands are just a few clicks away from accessing the Reddit ad manager and starting a campaign. Before you invest your hard-earned marketing budget on a new platform, do your homework.

Define your audience
Establish a budget
Follow best practices
Test (and test again)

Define Your Audience – Who Uses Reddit?

Reddit user demographics data is extremely useful in determining if the platform is a good place to position your brand. Reddit is mostly male, mostly young, mostly educated, and mostly strong earners.

Reddit Demographics Breakdown

61% male
70% Caucasian
64% are between the ages of 18-29
Only 7% of Reddit users are over 50
35% of Reddit users earn $75,000 per year or more
Reddit has 52 million daily active users worldwide
Reddit averages 222 million monthly active users in the US

Ready to get started? Learn more about our Paid Media services.

Establish A Budget – How Much Do Reddit Ads Cost?

Reddit advertising costs are similar to other PPC campaigns in the pricing structure. The minimum to advertise on Reddit is $5 a day. Advertisers can structure campaigns based on impressions, video views or auction-style CPC.

Cost per mille (CPM) – Impressions are purchased on a CPM basis, or cost-per-mille. This charges a set amount based on every 1,000 impressions.

Cost-per-view (CPV) – This video-focused metric tracks how long users watch a video ad.

Cost-per-click (CPC) – Auction-style ads start at $0.20 per bid. The total bid cost can change constantly based on the competitor’s budget. That dynamic pricing takes consistent management to remain cost-effective — one of the perks of working with Reddit ad agency.

The average Reddit ad cost-per-click is $3.50 in the US. The actual CPC for your ad campaigns could be substantially higher or lower, depending on the level of competition.

How Reddit Ads Work

Creating a campaign on the Reddit Ads dashboard starts by asking users to set an objective. There are five default campaign objectives, and we’ve noted how they’re billed:

Brand Awareness and Reach – CPM
Traffic – CPC
Conversions – CPC
Video views – CPV
App installs/downloads – CPC

Speak the Lingo (and Know Your Audience)

Reddit places ads in subReddits. Subreddits are communities within communities focused on particular topics. For example, there may be a Reddit about marketing. Within that community are subReddits that might include digital marketing, graphic design and other increasingly specific topics.

Subreddits are noted or tagged with a /r/, which means an Oneupweb ad to business leaders might be served to the /r/ceo subreddit (which happens to have 1,800 members).

More Best Practices

Redditors don’t like being sold to. More than any other platform, advertisers need to fit in, get to the point and be a little snarky, too. Reddit might be the best place for a brand to experiment with a bit of self-deprecation.

Let’s make a deal – If your promotion offers a discount, say so loud and proud in both the copy and creative.

Test and test and test – We recommend at least five different creative pieces per ad group optimizations. Reddit will do some of the work for you on Traffic and App Install campaigns, but you’ll need to experiment with new copy and creative variations on other campaign styles.

Fit in – Excellent copy treats Redditors like humans, not ad targets. Before crafting your ads, spend plenty of time on the platform and on specific subreddits to learn how that community communicates.

Getting Started with Reddit Campaigns

Our PCC team is full of Redditors who dedicate plenty of time to the platform. We support your Reddit campaigns with a fully-integrated team of experts, including professional writers, brilliant graphic designers and expert digital strategy. If you’re a medium or large business with a generous paid media budget, get in touch or call 231-922-9977 to learn more about our Reddit marketing services.