Content
People are getting tired of traditional social media! The endless stream of polished, unrealistic storytelling and picture-perfect content leads to irritation rather than engagement.
That’s where Reddit stands apart because it’s not just about consuming content; it’s about active participation.
That’s the power of Reddit Ads.
Users come here to seek advice, discover products, and dive deep into topics they genuinely care about. If done right, ads on Reddit don’t just get seen—they encourage discussions, drive clicks, and generate traffic to your website.
Sounds attractive? In this article, we’ll explore why investing in ads on Reddit is a smart move, how to set up successful Reddit paid ads, and share Reddit ads best practices to maximize your campaign results.
Reddit continues to grow as a powerful advertising platform in 2025, offering brands access to a highly engaged and niche-focused audience. With over 1.36 billion monthly active users, Reddit provides a unique place where people actively discuss their interests that they really care about. Let’s view several more reasons why investing in Reddit paid ads worth it:
So, if you are still doubting “are Reddit ads worth it” for your business. Promodo’s team insists on you trying their numerous benefits on your own business.
Reddit’s advertising platform offers a variety of ad formats designed to fit different marketing goals, from increasing brand awareness to driving conversions. Let’s learn more about the types of Reddit ads, their key features, and how do Reddit ads work.
Free-form Ads are the most customizable and unique ad type on Reddit. They allow advertisers to add text, images, videos, and links for impactful storytelling. These ads are ideal for brands that want to engage users through storytelling or provide in-depth information about their products or services.
Best for:
Image Ads are visually appealing, static ads that appear in Reddit feeds. They are easy to consume and can be a powerful way to capture the attention of users without overwhelming users with too much information.
Best for:
A fashion brand, for instance, might use Image Ads in r/malefashionadvice to highlight a new clothing collection, directing users to its website.
Video Ads autoplay within users' feeds, making them an effective way to capture attention quickly. This format is excellent for brands looking to showcase product features, tell a story, or create an emotional connection with their audience.
Best for:
A gaming company, for example, might launch a Video Ad campaign in r/gaming to showcase a teaser for an upcoming release, driving excitement among potential players.
Carousel Ads allow advertisers to include multiple images or videos in a single advertisement, enabling users to swipe through different content pieces. This format is particularly useful for businesses that want to highlight multiple products or showcase step-by-step information.
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Best for:
Reddit Carousel Ad might be a travel ad example to display different destinations, helping users explore vacation packages directly from their feed.
Conversation Ads encourage users to participate in discussions. These ads appear as organic-looking posts, making them perfect for brands looking to gather insights or start conversations around their products.
Best for:
For example, a tech brand could ask r/Apple, “What features do you want to see in the next iPhone?” This approach not only generates engagement but also provides valuable user insights.
Product Ads are optimized for eCommerce and direct sales, featuring product images, descriptions, and pricing details. These ads are designed to drive purchases by targeting users with buying intent.
Best for:
AMA (Ask Me Anything is a popular format of communication among Redditors. In order not to miss the opportunity and use the features of this format, you may also use the AMA ads. They allow brands to participate in live Q&A sessions with Reddit users, making them an excellent tool for developing trust, sharing expertise, and answering real-time questions.
Best for:
For example, the CEO of an AI company could host an AMA in r/technology, answering users' burning questions about the future of artificial intelligence.
Once we’ve figured out that Reddit ads possess numerous opportunities and benefits for businesses, let’s view how to launch advertising on Reddit step-by-step.
Before launching any campaign, you need to create an account on Reddit Ads Manager:
If you're running multiple campaigns, keep your naming convention consistent for better tracking.
Reddit offers various ad formats. In order to select the most effective for your business, define the desired results first. Selecting the right Reddit ad type is crucial for a successful campaign.
Reddit’s unique targeting options allow you to pinpoint users based on:
✅ Subreddit Interests – Target users based on the subreddits they engage with.
✅ Location & Device – Run ads by country, region, or mobile vs. desktop.
✅ Time of Day – Schedule your ads to run when your audience is most active.
✅ Custom Audiences – Retarget users who have previously interacted with your website or content.
Reddit users appreciate authenticity and transparency—so your ad copy should feel like a natural part of the conversation rather than a sales pitch.
Best Practices:
Reddit ads work on a CPC (cost-per-click) or CPM (cost per 1,000 impressions) model. Your budget strategy should depend on your campaign goals:
💰 Brand Awareness? → Use CPM bidding for maximum reach.
💰 Conversions or Traffic? → Use CPC bidding for better cost control.
Example:
Pro Tip: Start small, analyze engagement, then scale up your budget based on performance.
Once your ad is live, track key performance metrics in the Reddit Ads Dashboard:
✅ CTR (Click-Through Rate) – Indicates ad relevance and engagement.
✅ Upvotes & Comments – Shows how well your ad fits into Reddit’s culture.
✅ Conversions – Measures direct sales, sign-ups, or leads generated.
If your ad isn’t performing well, consider:
❌ Adjusting the headline to be more engaging.
❌ Refining your subreddit targeting for a better audience match.
❌ Testing a new ad format (switching from Image Ads to Conversation Ads, for example).
To determine the effectiveness of your Reddit ad campaigns, tracking key performance metrics is essential. These indicators will help you analyze engagement, conversions, and overall return on investment. Below are the crucial metrics to monitor:
CTR measures the percentage of users who clicked on your ad after seeing it. A high CTR indicates that your ad is compelling and resonates with the Reddit audience. You can improve CTR by optimizing ad copy, visuals, and targeting relevant subreddits.
This metric tracks how many users completed the desired action, such as signing up for a newsletter or making a purchase. A low conversion rate may indicate issues with your landing page or ad relevance.
CPC helps you measure the efficiency of your ad spend. If your CPC is too high, you may need to refine your audience targeting or ad format.
Unlike other platforms, Reddit thrives on user engagement. Monitoring upvotes, downvotes, and comments on your ads can provide insights into how well your content resonates with the audience. High engagement often translates to better organic reach.
Tracking impressions (how many times your ad was shown) and reach (how many unique users saw it) helps gauge brand awareness. If your impressions are high but engagement is low, consider adjusting your ad copy or targeting strategy.
ROAS calculates how much revenue your ads generate compared to the amount spent. A positive ROAS means your campaign is profitable, while a low ROAS suggests the need for optimization.
Reddit’s ad success depends heavily on subreddit selection. Analyzing how different communities interact with your ads can help refine targeting and improve overall results.
By regularly tracking these metrics, you can optimize your Reddit ad campaigns for better performance and higher returns.
Different small and large businesses use Reddit ads for their products and services promotion. Let’s view some of the best Reddit ads and their results.
Mitsubishi Motors Canada leveraged video ads on Reddit to increase awareness and expand the reach of its 2022 Outlander SUV campaign. This approach led to the growth in website traffic, with 99% of visitors being new users (source). Additionally, the campaign delivered a 45% higher mobile click-through rate for Category Takeovers. It achieved 62% more reach per dollar compared to other social media platforms, making Reddit a highly effective channel for their marketing strategy.
In 2022, Adobe turned to Reddit Ads to connect with creative talent within the platform’s design-focused communities. According to Reddit, this collaboration significantly boosted Adobe’s conversion rates—tripling results compared to its other top-performing platforms. The campaign also delivered impressive engagement, achieving a 110% higher click-through rate for Front Page Takeovers, a 40% increase for Promoted Posts, and a 14% reduction in cost per click for Promo Posts compared to standard creative.
Similarly, HP implemented a low-funnel strategy on Reddit to drive subscriptions for its Instant Ink Program in the UK. The campaign proved highly effective, generating an 8x higher conversion rate and improving cost efficiency per enrollment by 42% compared to other social media channels.
Reddit is a powerful platform for reaching your audiences. You can reach a 99% increase in website visitors (same as Mitsubishi Motors Canada) only if you know how to use it correctly.
At Promodo, our team of certified Reddit Ads specialists is here to help you launch high-performing campaigns that maximize ROI and drive real business results.
Let’s make the Reddit platform your next growth channel!
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