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Reddit proves its ad power—and why marketers shouldn’t overlook it

The news: In an EMARKETER interview after Reddit’s earnings Thursday, Chief Operating Officer Jen Wong painted a picture of a company that has found a powerful rhythm—financially strong, advertiser-rich, and brimming with global potential.

From education to expansion: Wong, now more than seven years into her tenure, reflected on how far the company’s ad business has come. Early on, her team’s job was explaining to advertisers what Reddit even was—a platform built on authenticity and conversation over influencer gloss.

  • The next challenge was helping advertisers engage without disrupting communities, then proving lower-funnel performance through “years building the product,” she said.
  • Today, brands see Reddit as less of a curiosity and more of a conversion opportunity; that said, “there are still thousands of advertisers” that should be on Reddit but aren’t yet, Wong said.
  • Still, there’s been progress. Wong cited the platform’s depth across sectors: 9 out of 15 verticals grew ad spending at least 50% YoY, a sign that advertiser adoption is broadening well beyond the early core categories.

On audience growth: Wong said Reddit’s next phase is about expanding reach and discoverability. In the US, she sees major opportunity in areas like parenting and sports, where discussions thrive but awareness lags. “We have incredible content,” she said, “but not all parents know about it yet.” Growth, she added, will come partly from marketing and partly from product work that makes community discovery easier for new users.

In her view, Reddit’s ad growth is now a matter of scale and visibility. But the heart of Reddit’s appeal—the community-led exchange of ideas and opinions—remains its greatest differentiator. “Reddit has shown it can drive real business outcomes,” Wong said, “but it’s also where people connect over things they care about. That’s what makes it work.”

What advertisers should do:

  • Lean into efficiency and intent. Reddit’s users spend more time per visit than on X or Snapchat, yet the platform still monetizes at just $0.08 per user hour, per our forecast. That undervaluation presents room for stronger ROI as ad formats mature and automation tools improve. With ad revenues projected to climb 46.6% over the next two years, marketers should prioritize Reddit for its high-intent, low-clutter environment, especially in tech, gaming, consumer electronics, and other discovery-driven categories.
  • Build relevance, not reach. Reddit’s success depends on the credibility of its communities. Advertisers should invest in original, community-specific creative rather than recycling social content, integrating campaign participation (e.g., AMAs, polls, or user challenges) that fits subreddit culture.
  • Integrate Reddit into omnichannel planning. Reddit campaigns work best when paired with CTV, search, or display, where the platform’s trusted discussions can amplify brand consideration and close the loop with performance channels.
  • Prepare for AI’s impact on discovery. As AI-driven search tools increasingly surface Reddit content, marketers should encourage on-platform action—clicks, saves, comments, or awards—to keep engagement within Reddit’s ecosystem, where ads and brand content remain monetizable.

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