Reddit Says It Is Testing Ads in Search Results as Traffic Falls
The test places ads tied to what people search for on Reddit, while US daily users slipped in the third quarter.
Reddit announced on Tuesday that it is testing ads on its search results pages, according to TechCrunch. Ads will reach a select group of eligible advertisers and appear based on how relevant they are to the search. Reddit's examples: a search for "espresso station" could show espresso machines, coffee or mugs.
Reddit calls this an initial test and says it will study how people respond. TechCrunch ties the move to falling search referrals, as Google's AI-powered search, including AI Mode, answers questions on its own pages instead of sending people to other sites.
TechCrunch reports Reddit's U.S. daily active users fell from 53.2 million in Q2 to 50.7 million in Q3, while global daily users were flat at 130.3 million. Q4 revenue guidance of $1.00 billion to $1.03 billion came in below the $1.05 billion analysts expected. Reddit also said last week it will gradually limit content to logged-in users.
If customers ask questions about your products on Reddit, a search ad is a new way to be in front of them, but nothing is open to general advertisers yet. Check your Reddit Ads account for the test, and keep watching how much of your own traffic still comes from Google.
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