Reddit has launched a new ad unit that will live within its Ask Me Anything (AMA) feature, which allows subject matter experts to answer questions from the app’s users in an informal session. The offering was unveiled at the Consumer Electronics Show (CES) in Las Vegas this week.
AMA Ads enables brands to promote their own question-and-answer sessions directly from Reddit’s dashboard (Reddit Ads Manager). The ads allow Reddit users to RSVP or ask a question in advance. The format also includes a “Remind Me” button to help increase audience participation. According to the company, Sephora is one of the brands that has already tested the ad unit (pictured below), with its AMA on December 3 having garnered more than 1,000 RSVPs.
Since its launch in 2005, Reddit has been upgrading to introduce different ad formats including promoted posts, such as text, image and video spots. Recent research conducted by the platform globally showed that conversations on the app help aid brand discovery, which drive purchases. Around 23% of recommendation posts on the social network result in someone selecting a brand or product they had not previously considered, according to the platform’s research.
New tools for Reddit Pro brands
In addition to the AMA announcement, Reddit unveiled other brand-friendly updates. Its free Reddit Pro suite of tools will now include a trends feature, which will enable businesses to see what users are discussing in the app.
In the new “Trends” tab of the Reddit Pro menu, businesses can track keywords or phrases – including brand and product name, category or even the latest viral trend – and see the volume of conversations around them, as well as a list of communities mentioning the keyword or phrase. The tool has over 100,000 preprogrammed keywords and phrases. “For growing businesses… these insights help them find and engage with their specific audience on Reddit. In fact, Reddit Pro Trends led to 12% more posts created by participating businesses,” the company wrote in a blog post.
Reddit Pro was launched in March of last year to help brands discover, join and contribute to conversations on the platform. To date, more than 200 brands use the suite, including Taco Bell, Wendy’s, the NFL, Wayfair and The Wall Street Journal. Some of the features it offers are AI-based insights powered by more than 16 billion Reddit comments that show top communities, trending topics and conversations relevant to specific categories; performance analytics; and publishing tools that help draft and schedule profile posts.
Both announcements come on the heels of a record fiscal quarter for Reddit. In Q3 2024, the social network reported more than 100 million daily active users for the first time, marking a 47% year-over-year increase. It also posted year-over-year revenue growth of 68% to $348.4 million.
