Reddit takes aim at e-commerce with enhanced ad tools

The social network is targeting high-intent shoppers with optimized ads and improved diagnostics.

Reddit is revamping its ad platform to help advertisers boost sales directly on their sites, streamlining the path to purchase for users.

The social network has introduced Dynamic Product Ads (DPA) for the general public in Reddit’s Ads Manager. The tool will allow brands to run catalogue-driven placements next to relevant subreddit conversations.

With DPA and model improvements that optimize ad targeting and relevance, Reddit says advertisers will be able to reach shoppers with high purchase intent on the platform and drive conversions by showing “the right product to the right person in the right context.” These ads use contextual buying signals – both on- and off-platform – to connect products in the brands’ catalogue with users based on their stage of purchase.

Additionally, Reddit has improved diagnostics to help advertisers optimize campaign setup and address pixel and catalogue configuration issues to assess their readiness to launch. This means that advertisers will be able to identify and resolve technical issues before launching their campaigns, allowing them to get the most out of their advertising spend. Also, with a new Smartly integration, currently in beta, brands can create, launch and measure Reddit DPA campaigns in the Smartly platform.

Since the launch of the beta version of DPA in April 2024, Reddit says the tool has helped brands make significant advances in performance. In Q1 2025, DPAs generated 94% higher ROAS on average compared to Q3 2024 for advertisers with active campaigns in both quarters.

Reddit launches this tool after seeing an upsurge of users interested in using the platform as a shopping guide. Its recent survey of 1,138 Reddit users revealed that 85% of respondents rely on the platform during the consideration phase of their shopping journey, utilizing reviews to shortlist potential purchases. Moreover, users are also 25% more likely than users of other platforms to anticipate increased spending in the next six months.