The news: Reddit’s ad business is on a path of steady growth, with ad revenues expected to reach $1.8 billion this year and grow 29% to reach $2.5 billion in 2026, per a new WARC forecast.

Other key findings:

• Brand participation on Reddit shows promising results: One organic brand post per week increases positive mentions by 3.5%, and three relevant comments on user posts increase positive mentions by 2.2%.
• Reddit is a key source of information for users who aren’t active on other platforms. Seventy-four percent of Reddit users aren’t on Snapchat; 63% aren’t on Pinterest; 59% aren’t on X; 58% aren’t on TikTok; 45% aren’t on Instagram; and 30% aren’t on Facebook.

Zooming out: Reddit has put significant effort into growing its ad ambitions, with 61% YoY ad revenue growth in Q1.

• The company launched Dynamic Product Ads to all advertisers in recent months. The resource is designed to create personalized ad experiences leveraging machine learning, user discussions, and product catalogs—tapping into Reddit’s unique community-driven user base for contextually aligned ad placements.
• Last year, Reddit rolled out a native ad format called “freeform,” built to resemble regular posts to blend sponsored content seamlessly into the user experience.