Reddit Ads Statistics 2023 – 9 Mind-Blowing Statistics

In need of Reddit ads statistics so you could decide if you will advertise on the platform? Well, I not only have Reddit ads statistics but mind-blowing ones! But before I enlist what these are, let’s have an overview of Reddit ads and their benefits.

What’s new with Reddit Ads?

Reddit announced in late October its first partnership with four companies–adMixt, PMG, Sprinklr, and VidMob–for their Ads API Ecosystem. An effort meant to improve the benefits of advertisers through a stronger advertising infrastructure, Reddit explained.

Though Search Engine Land points to Reddit’s lack of a clear-cut advertising policy and Marketing Brew to its varying policies per subreddit that have threatened the safety of companies who choose to use the platform’s $10 billion value for their marketing goals.

The new partnership now streamlines the implementation and management of advertisements across the platform and enhances it with new features. This will truly enable advertisers to connect with Reddit’s 100,000 engaged communities, Social Media Today explains. This is on top of the 1,000+ targetable communities Reddit added for new and existing advertisers through their Ads Manager.

There are exactly nine new features in Reddit’s Ads Manager including a revolutionary Live Chat that, as per Social Media Today, no other social media platform currently has. The rest of the eight new features focus on providing advertisers with a tracking and monitoring system for their ongoing campaigns on the platform.

Thus, enabling advertisers to view Reddit ads statistics in real-time and make necessary changes to them where needed so they can achieve their goals. Sounds pretty amazing, right?! So let’s get into more detail on what these ads are and their benefits.

What are the different Reddit ads?

Reddit Ads are said to be the most complicated type of advertisement in the sense that platform users are empowered to keep it in existence. Users are famed to bash shameless marketing. Thus, advertisers need to take a thorough understanding of the forum-type platform in carefully crafting their creative assets that comply with it.

According to Jungle Topp, there are three types of Reddit Ads. These are Display Ads, Self-Serve Sponsored Links, and Sponsored Q&As.

1. Display Ads

These are banner advertisements that Reddit users can vote on and comment on concerning a given topic.

2. Sponsored Q&As

While Sponsored Q&As bank on Reddit’s famed question-and-answer content catered to a specific subreddit or topic.

3. Self-Sponsored Links

Finally, Self-Sponsored Links are often used for first-time advertisers on Reddit being affordable and flexible. This can either be an external or internal link that draws users to engage with an advertiser either through content they have posted within the platform or on their website.

Though Reddit Ads appear with the label “Promoted”, the platform has made a way to ensure advertised content is unobtrusive and appears like much of its informational content. This is shown to those who are truly interested in your content based on your topic or chosen subreddit it appears in.

JungTopp highlights that Reddit Ads range from $5 daily to $30,000 based on cost per mile (CPM) or a minimum of 1,000 impressions. They also offer bidding options for ads with each bid costing $0.20. Now, why advertise in the first place?

What are the benefits of Reddit Ads?

Reddit Ads enable companies to create their niche or community online through the content they provide. This is a unique feature Reddit provides advertisers since they can directly engage with their target market and get real-time feedback about their brand, product, services, undertakings, and even advertisements.

Through subreddits, companies can create a niche where a particular topic about their company, services, or brand-related content is discussed.

Redefine Your Marketing summarizes that Reddit’s huge user base and gathering quality leads are the main benefits of using Reddit Ads. This is against a platform that is generally intimidating for those accustomed to advertising on Meta’s social media platforms.

As per AffiliateInsider, the important thing about Reddit Ads is to provide content with value to users and not mere clickbait. Authenticity and integrity matter most in the platform where users despite ads as mere advertisements. Users value information and relevance that communicate directly to them in a way they appreciate and clearly understand.

By now, you already have a better perspective of what Reddit Ads are and how they work. Let me now move on to the statistics for you to see why, despite being complex, Reddit Ads placement is much sought for.

Why are Reddit Ads so popular?

Reddit ads are so popular because they provide companies with great brand insights through consumer-driven inputs seen in the discussion threads but also global visibility due to the vastness of its member base. In gist, Reddit Ads serve as a research tool on top of being a marketing leverage.

Plus, there are these mind-blowing statistics:

1. There are an average of 50 million daily active users on Reddit

Reddit registered 50 million daily active users this year as of this article’s writing based on Oberlo and StartUpBonsai reports. Though a 3.8% decrease from 2021’s registered 52 million daily active users, this data nonetheless show steady growth in users when compared to Reddit’s initial member base in 2015.

Reddit has successively been growing in users at 258.33% as seen in the number of logins from 2015 to 2019. This is the result of the platform’s high-quality moderation of the forums despite the anonymity of users and the strong niche communities built in it.

2. Reddit has more than 3.5 million subreddits and growing

Speaking of strong niche communities, Reddit currently has a minimum of 3.5 million subreddits in place. This number is expected to grow in the following months considering there were only 2.8 million subreddits in 2021.

Popular subreddits are those in the format of “Ask Me Anything” (AMA) that build communities based on a specific topic. These communities, despite the anonymity of users, are built on trust. Thus, companies have to make sure to only use this format when they can be transparent, authentic, and relevant to Reddit users aka their target market.

Reddit outdoes other social media platforms in community engagement and building, as well as, in being a valuable data resource. Scientists were able to mine 800,000 Reddit posts on the effects of COVID-19 on mental health. The data helped draft material for educational awareness on vaccine efficacy and immunology.

3. Reddit has 166M monthly visitors, a quarter of which are Gen Zs

If Reddit’s daily visitors average 50 million, its monthly visitors have been recorded at 166,277,100. HubSpot says that Gen Zs make up 26% of Reddit users and Millenials from the United States (aged 18 to 29 years old) make up 36% of users.

A majority of Gen Zs (51%) say the user-driven features of the platform attracted them the most. Some of the said user-driven features pertain to commenting, upvotes (positive feedback or rating of ads and content), and subreddit.

4. Reddit is a trusted source of product information by 82% of Gen Zs

Valuable content remains the key feature of Reddit for its users, of which 82% of Gen-Zs say they trust the platform when it comes to getting more information on products they love or are interested in. This is definitely something new companies can tap on, making sure they provide useful and relevant information that’s not hard-sell or insincere.

In terms of your content, data shows that post titles with 20 to 80 characters attract more readers and engagement in the platform. Again, avoid using clickbait.

5. Reddit remains one of the top-visited websites in the United States

Since its conception in 2005 as “the front page of the internet” in Virginia, USA, Reddit has grown in value from a $20 million company when it was bought by Conde Nast Publications from founders Steve Huffman and Alexis Ohanian in 2006 to a $6 billion one in 2019.

The factors that contributed to its net worth are the volume of traffic on the platform, the reach and activity of its community, and the diversity of content. These factors consistently pushed Reddit to be on the top of the most-visited websites in the United States, garnering the fifth spot currently.

6. 63.8% of Reddit users are male, almost half are in the United States

In terms of gender and location, most or 63.8% of Reddit users are male with 47.13% of them located in the United States. This shows that men are most likely to have the time to read informational content. Catering the communication of your advertisements toward this gender type would prove most helpful in achieving your marketing goals.

7. Redditors spend a shorter time on Reddit than on other social media platforms

Despite its gigantic community, Reddit users oddly spend only up to 24 minutes daily or an average of 10 minutes and 23 seconds on the platform than most netizens do on Facebook, Instagram, TikTok, and Twitter. This is mostly due to Reddit’s content being more geared toward providing information than entertainment. Though 1.4 billion native videos are watched monthly by Reddit users.

8. Subreddits implement various advertising policies

A study showed that there are more than a dozen highly populated subreddits that do not allow advertisements. These are r/mileycyrus, r/mensrights, r/daftpunk, r/floridaman, r/mensrights, r/mdma, r/islam, r/israel, r/redhotchilipeppers, r/depression, r/archerfx, r/ska, and r/stopsmoking. The nature or topic of these subreddits gives a glimpse into why advertisements are not allowed in them.

While almost a dozen subreddits that normally allow advertisement also sometimes prohibit it. These are r/alcohol, r/crypto, r/religion, r/politics, r/neutralpolitics, r/ukpolitics, r/canadianpolitics, r/americanpolitics, r/internationalpolitics, r/liberal, and r/conservative.

The inconsistencies in the advertising policies in these subreddits have surfaced the controversy that the platform doesn’t have clear-cut policies in place. This also made it difficult for companies to advertise. Despite this one weakness, Reddit remains a sought-after platform among advertisers.

9. Reddit is forecasted to earn $520M in advertising revenues come 2023

In fact, Reddit is projected to earn more than USD520 million in advertising revenues next year. This projection shows a 90% increase in its reported September 2021 online ad revenues of USD305 million. Reddit’s annual revenue for 2021 was recorded at USD350 million, which is twice what it earned in 2020 at USD161.4 million. Though this is by far smaller than Twitter’s USD5.58 billion advertising revenue for 2021.

Conclusion

Reddit ads statistics show promising returns for companies—both old and new—wishing to advertise on the platform. Thorough knowledge of how the platform works and the culture users have therein, especially in each subreddit, is essential to the success of a Reddit ads campaign.

Sources used:

• Reddit
• Search Engine Land
• Marketing Brew
• Social Media Today
• Reddit Updates
• JungleTopp
• Redefine Your Marketing
• AffiliateInsider
• Oberlo
• StartUpBonsai
• HubSpot
• BusinessOfApps
• Statista
• Finances Online

FAQs

Is it costly to advertise on Reddit?

No, not really. Reddit ads are available in various payment schemes. There are Reddit ads that can be bought based on every 1,000 impressions or cost per mille. There are per-day rates at a minimum of $5. While there are also ads bought per bid at $0.20 or more, which depends on the number of advertisers vying for the same target audience. Reddit also offers the option to work with their sales team, which minimally charges $30,000 for advertising placements. Ladder adds that this may even range to $50,000 per quarter for large-scale advertisers.

How do “Promoted Ads” work on Reddit?

According to Ladder, Promoted Ads create an opportunity for a community or particular subreddit to comment on it. What happens is a user will create a post on a particular brand-related content. This is meant to draw a company’s attention to make use of that particular post as part of their promoted advertisement aka promoted post. The company gets the permission of the post’s author for such an undertaking and implements it once they do. Voting and commenting on the advertiser’s post will be linked to the original one while the former enjoys the benefit of exposure to users from the latter.

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