It’s no surprise when a social platform announces that they are changing their monetization strategy, but Reddit’s move to cost-per-click advertising seems to be taking the digital advertising world by storm. With this new-to-Reddit model, advertisers are charged each time a reader performs a click action — something that is most popular with marketers who are familiar with direct response tactics. Many marketers are looking for new options beyond Facebook, Instagram and Google AdWords, and Reddit is a high-powered community of people who are truly passionate about what they’re reading. This may make them the ideal audience for a wide range of CPC advertising, but is the news aggregation site Reddit right for your brand?
Tectonic Industry Shifts
For years, Facebook and Google have been the advertising giants in the digital space, with Amazon looming as a distant third. With the luster leaving Facebook due to all the recent privacy scandals and Google dealing with technical challenges and a difficult platform, the time is ripe for new and smaller advertising options to enter the fray. Reddit sees this as a prime opportunity to go after advertisers who are primarily direct response marketers. Two of the top brands that are making significant budget shifts are Wayfair and Hired, but others are unlikely to be far behind when they see the success that these two front runners are having.
Reddit’s Attraction for Advertisers
Finding new and engaged audiences is only part of the attraction of the media giant. Advertisers are also attracted by the relatively low cost of advertising, stated by some of the initial participants at as little as 50% of the cost of cost per million advertising (CPM). This results-based method of advertising is one that isn’t ideal for all marketing strategies, but works great for organizations looking to drive direct sales for a highly-engaged audience. To say that Reddit’s audience is engaged would be understating it, as the site’s 330 million global visitors activate 18 billion page views each month. To respond, Reddit has nearly doubled their internal advertising force from 59 to 100 over the past two years.
Highly Targeted Advertising
Reddit’s ad platform allows for some pretty sophisticated targeting, down to the topic that is being aggregated. What’s better is that Reddit continues to expand their targeting functionality throughout 2019, including campaign management and reporting boosts further along in 2019 as well. Many brands are seeing success driving organic traffic on Reddit, especially for those who are unconcerned about being loosely associated with the salty language and (relatively) unmonitored commenting system.
Leading Offsite Conversion
Cost-per-click advertising is best suited to bottom of the funnel activities where you are convincing your prospects to take the plunge and place an order. This type of advertising is ideal at reducing the overall cost of campaigns that have a sales target while improving the traffic quality. Video ads are particularly beneficial for businesses as they’re looking at CPC properties for their advertising. While Reddit has supported advertising within the platform since 2007, it’s only been within the past few years that ad revenue has really expanded.
If your brand is selling direct and is comfortable with a public forum where anything goes, CPC advertising on Reddit may be a great addition to your advertising arsenal.