Reddit has launched Dynamic Product Ads (DPA), a new ad product that enables advertisers to promote relevant products in conversations where Redditors are already researching, discussing and making purchase decisions. According to the company, DPAs combine shopping signals with machine learning and advertiser product catalogs, then serves the most relevant products to convert high user intent into action.

Dynamic Product Ads on Reddit provide instant campaign creation as the ads auto-populate in real-time with the latest images, pricing and product images from an advertiser’s catalogue. The format offers two targeting options. The first is retargeting that automatically serves ads based on the products users have previously engaged with on the advertiser’s site. The second option is prospecting, which automatically serves the most relevant products based on what people engage with on Reddit or advertiser sites.

During product testing, Reddit says Dynamic Product Ads provided 1.9 times higher return on ad spend (ROAS) when compared to conversion campaigns for the advertisers that participated in testing. Each month, an average of 40% of new conversations are related to purchase decisions and product categories plus 75% of shoppers say they can have genuine discussions about what products or brands to try on Reddit, according to Brandwatch Global Data for Q1 of this year.

The new ad product is now available in public beta for all Reddit advertisers globally – with English, German, Spanish, French, Italian and Portuguese languages supported – via the Reddit Ads Manager.