The news: Reddit is rolling out Dynamic Product Ads to all advertisers after a successful global beta test, per a company announcement.

• Advertisers running both Dynamic Product Ads and standard conversion campaigns saw double the return on ad spend in Q1 2025.
• Additionally, Reddit reported a fourfold annual increase in product catalogs hosted on its platform between March 2024 and March 2025, signaling growing advertiser interest.

Dynamic Product Ads create personalized ad experiences by using machine learning, user discussions, and advertiser product catalogs to match ads with relevant audiences and conversations. By tapping into Reddit’s unique community-driven conversations, the platform aims to offer more contextually aligned and conversion-friendly ad placements.

Zooming out: Reddit has been honing its ad strategy by experimenting with new formats and tools—and its efforts seem to be paying off.

• The company had a massively successful Q1, growing ad revenues 61% YoY, with Dynamic Product Ads showing strong results. Growth was also bolstered by Reddit Answers, an AI-powered conversational search tool, which has reportedly exceeded 1 million weekly users.
• While Reddit’s overall share of ad spend is low compared with other platforms, it excels in user engagement and trust. A Reddit report conducted with Adjust and Sensor Tower found it to be the most-trusted platform for informing product and brand decisions; two in three Redditors would purchase a product after seeing a Reddit ad; North American users spend 55% more time in-app on Reddit than other platforms; and 75% say Reddit helps them make faster decisions on what to download or buy.