Reddit Adds CPC Digital Advertising to Its Social Platform
Social news aggregation website Reddit officially announced that it would be adding cost-per-click (CPC) ads to its advertising platform.
This announcement is significant, especially for those who monitor digital advertising trends.
Previously, Reddit only offered CPM and Cost/View bid types. Adding CPC bidding is Reddit’s latest step in its mission to level up with companies like Google and Amazon in terms of advertising offerings.
This addition is a welcome (and much needed) change, as CPC bidding has historically allowed for better ROI within an advertiser’s budget on other platforms since they only pay when a user clicks on an ad. Not to mention, seeing an increase in website visits.
Adding CPC bidding gives marketers with smaller budgets, or strict conversion goals, the opportunity to dip their toes into the Reddit platform.
CPC bidding gives more control over the return on their advertising dollars, and marketers are now able to pay for actual engagements, rather than users just seeing their ads.
So, what does this mean for brands and their CPC digital advertising efforts?
Incorporating Reddit Advertising in Digital Advertising Strategies
First, a brief overview of the Reddit advertising platform:
With over 234 million unique visitors monthly, Reddit is one of the world’s largest online platforms.
Not only does it offer an enormous audience, but due to its “subreddit”-based structure, the platform offers highly specific interest-based targeting options.
There are two main ad types on Reddit:
Similar to how ads of the same name run on Facebook and LinkedIn, Promoted Posts offer advertisers the opportunity to have their post positioned prominently within the subreddit feed.
Be wary, however — other users can still upvote or downvote a promoted post. So, the more value provided, the better.
The same way you would promote content organically, make sure that what you’re offering contributes to the conversation within the desired feeds. Or that the ad offers something unique that users actually want to see.
Unlike other platforms like Google and Bing, Reddit display ads are not available on the self-serve system and are only able to be purchased through the Reddit advertising team.
A brand must spend at least $50,000 quarterly to be eligible for these, but they provide a little more visibility and exemption from the upvote/downvote process.
Reddit Campaign Objectives
CPC ads on Reddit offer five types of campaign objectives and three bidding strategies for their ads.
- Brand Awareness & Reach: Ideally, this objective is used for getting the word out about product(s), service(s), or business, especially if you don’t need to stick to a cost/conversion or ROI goal. This high-funnel campaign reaches anyone that could be interested in what your brand has to offer.
- Traffic: This objective is best for drawing people to your site to learn more about your brand. This is great if you have items to sell or want to run a robust remarketing campaign to your Reddit traffic.
- Conversions: This strategy optimizes campaigns for conversions, so traffic might be lower, but the ROI will be higher. This is great for campaigns with high ROI goals or used as a way to capitalize on an audience that you know is profitable for the brand.
- App Install: This objective speaks for itself – it helps brands promote app installs.
- Video Views: Video campaigns are great awareness drivers, and perfect if you’re looking to spread information about products and/or services in a more engaging way.
- CPM (Cost per 1,000 impressions): Advertisers pay per 1,000 views of their ad (Best for Brand Awareness & Reach campaign objectives).
- Cost-per-Click: Advertisers pay only when a user clicks on their ad (Best for Traffic, Conversion, and App Install campaigns).
- Cost-per-View: Advertisers pay when a user watches their video (Best for Video View campaigns).
By combining these ad types and bidding/campaign objectives in digital advertising efforts, marketers can now build out a 360-degree targeting strategy that targets users throughout their conversion journey via the Reddit platform.
Why Use Reddit Advertising When Google & Facebook are Already Working for me?
I get it. Reddit is just another platform to manage, another line item to budget for, and another thing we have to fit into our optimization schedules.
So, why should we bother with Reddit when other platforms are already working for us?
Reddit Targeting Opportunities
Reddit offers three different targeting opportunities — interest targeting, collections (targeting a collection of specific subreddits) and specific subreddit targeting.
This gives advertisers nearly unlimited possibilities for how to target and engage with audiences.
Additionally, rather than relying on cookies to capture interest data, Reddit is able to collect that data for themselves based on the subreddits each user visits — making it more reliable.
Audiences Searching for Information
In many cases, Reddit users are already there to get information and learn new things.
Marketers have the opportunity to capitalize on this mindset and offer users information about who the brand is and what they have to offer. This is particularly beneficial when these users are already in the right mindset to process and engage with this information.
Massive Audience Allows for Testing Opportunities
At the beginning of 2017, there were approximately 1.2 million subreddits, and that number has only increased over the last two years.
This number combined with interest targeting and the ability to target collections of subreddits allows marketers nearly unlimited opportunities to test and optimize their targeting strategy.
Social Platform Audiences Don’t Necessarily Overlap
It goes without saying that there are people who use Reddit that don’t use Facebook, and vice-versa.
Leveraging a variety of platforms gives brands the best opportunity to fully cover the potential market, and layered with the targeting opportunities on Reddit, is something that every marketer should consider taking advantage of.
A Tip for Advertising Success on Reddit
It’s well known that Reddit users don’t necessarily appreciate marketing on the platform — especially in the form of self-promotion.
As mentioned earlier, Reddit users are there to get information or learn something new. So, they don’t take kindly to people — whether it’s marketers or just members of the public — taking advantage of that.
Reddit users are also fairly well-educated and may be more critical of the information put in front of them. Marketers should avoid anything that might seem like a scam or otherwise illegitimate. (Which, of course, we should all be doing anyway.)
So, when advertising on Reddit (and really, when advertising anywhere) you must make sure that your messages are relevant, helpful, valuable, and legitimate.
Otherwise risk being “downvoted to oblivion.”