Reddit announced on Nov. 3 that it is testing advertisements within its search results, adding a potential placement for brands seeking people researching products and recommendations. The experiment is limited to a selected group of eligible advertisers.
A test, not a general rollout
In its announcement, Reddit said the placements use existing advertising targeting. A query’s context is among the factors that may determine which ads appear.
The company illustrated the approach with searches related to coffee equipment and home offices. Those examples describe possible ad matches, not disclosed campaign results or evidence that a purchase followed a search.
Reddit said it would study users’ responses and refine the experience for both users and advertisers. It did not provide a date for general availability, name participating advertisers or publish performance measurements for the test.
A new placement within an advertising-led business
The announcement follows Reddit’s Oct. 29 earnings release, which reported quarterly advertising revenue of $847 million, up 54% from a year earlier. Total revenue was $895 million, up 53%, for the quarter ended Sept. 30.
That earlier release also forecast fourth-quarter revenue of $1 billion to $1.03 billion. The forecast is separate from actual third-quarter sales and does not establish what the new search placements will contribute.
For media buyers, the immediate distinction is access: Reddit has confirmed an experiment, but not an advertising product available to every buyer. Its performance and eventual scope remain unreported.