The company wants to help advertisers reach users who show a “high purchase” intent.
Reddit will soon start putting ads in more places as it faces increased pressure due to declining traffic from Google. The company will start testing ads in its search results in an effort to monetize the “high purchase” intent of users who rely on its platform for buying advice.
In a blog post announcing the “initial test” of the new ad format, Reddit said it would surface the ads based on “contextual relevance” and other factors. For example, searches for “espresso station” could turn up ads for coffee-related items like mugs, beans or espresso machines.
Reddit didn’t say how often ads may appear, but ads were shown near the top of search results in screenshots shared by the company. Reddit said only a limited group of advertisers would have access to the new format in the first phase of testing, but suggested the ads would eventually expand. “During this test, we will evaluate and understand how users respond to these ads so we can refine the experience for users and advertisers over time,” Reddit said.
The new ads come amid a broader shakeup that will see the platform restrict logged-out users from most of its content. Reddit said last week that Google’s AI mode has led to significant declines in search traffic for the platform. During the company’s CEO Steve Huffman said that moving to a logged-in only model would help the company improve its ad targeting.
Both changes underscore how Reddit has increasingly had to change longstanding features as it grapples with how AI has upended aspects of its business. The company has already locked down its developer platform and Old Reddit in an effort to combat scraping. And soon most of its content will be blocked from anyone not logged in to an account. “At this point, we’re the only platform that doesn’t do this,” Huffman said during last week’s earnings call.” And so, you know, Reddit has just evolved so much that I think this just meets the needs of the time.”
