Everything advertisers need to know about how to run ad campaigns on Reddit in 2023

NEW YORK, NEW YORK, U.S.A, May 15, 2023/EINPresswire.com/ -- As social media becomes increasingly dominated by big platforms like Instagram and TikTok, one platform that is finally receiving some well-deserved recognition is Reddit. With more than 55 million users, this platform has over 3 million communities, called subreddits. Which are all organized around specific topics and can be identified by an "r/" prefix in their names. But while the platform is not as big as Facebook, says Avi-Meir Zaslavskiy — the CEO of 999Global and a marketing specialist — the benefits of advertising on Reddit make it an attractive option for social media advertisers. Three key advantages of advertising on Reddit are the ability to target a niche audience, a highly-engaged audience, and the lower advertising cost which is because of less competition on the platform.

How to Advertise on Reddit
-Create a Reddit Account: "To advertise on Reddit, the first step is to create an account if you don't already have one," says Avi-Meir. This can be accomplished by providing an email address or using an existing Apple or Google account.

-Add a Payment Method: After creating a Reddit account, advertisers can head over to ads.reddit.com and add a payment method to their ad account. "Once you have an active payment method, you can advertise on the platform," explains Avi-Meir.

-Identify the Right Target Audience: Generally speaking, Reddit's user base is predominantly male, young, highly educated, and high earners. According to demographic data, 61% of Reddit users are male, 70% are Caucasian, and 64% are between 18-29. In contrast, only 7% of Reddit users are over 50 years old. Furthermore, 35% of Reddit users earn $75,000 or more per year. However, to get a more precise target audience, Reddit offers 3 main ad group targeting options: communities, custom audiences, and interests. Community targeting on Reddit allows advertisers to target users who have recently engaged with or subscribed to a particular subreddit. This approach enables advertisers to reach a highly specific and niche audience.

Custom Audience targeting on Reddit uses first-party and behavioral data to display ads to specific audiences. This includes targeting customers using their email list, retargeting engagement with people who have interacted with their content or clicked on ads, and retargeting visitors to their website who have taken certain actions. "However, age and gender targeting is not available on Reddit due to the platform's limited collection of user profile information, but geographical targeting is possible," says Avi-Meir. Interest targeting is based on the audience's perceived interests and the subreddits they join, which is gotten from their content consumption behavior. Interest targeting on Reddit is relatively more general and includes around 15 different interest groups, with a wide range of subgroups such as Animals & Pets, and Art & Design.

-Create an Ad Campaign: On the Reddit Ads dashboard, the first step to creating a campaign is to select an objective. There are five default objectives to choose from, each with its own billing method. These include brand awareness and reach, traffic, video views, app installs or downloads, and conversions. "When creating a campaign on Reddit, you may notice that most campaign objectives have a bidding type of cost-per-action (CPA) instead of CPM," says Avi-Meir. This means that advertisers can only achieve their desired results with more testing and a tougher bidding strategy than on other platforms with automatic bidding algorithms that are result-based. Despite this, with the right approach, advertisers can still find something that gives them the volume of conversions they desire, and a favorable price point.

-Choose an Ad Placement: Reddit provides advertisers with two ad placement options: Feed and Conversations. Ads displayed in feed placement are visible to users scrolling through their "Home" and "Popular" feeds, as well as when browsing individual subreddits. While conversation placement is a step further and targets users participating in specific discussions. These ads are displayed between the post and the first comment. "So choosing the right placement according to your business goals is key to running effective ads on Reddit."

-Set a Suitable Price: When it comes to pricing, Reddit advertising costs follow a similar structure to other pay-per-click (PPC) campaigns. Reddit operates differently from most paid social platforms as it lacks an automatic bidding algorithm. Instead, advertisers need to manually set their maximum bids for CPM, CPC, or CPV based on their campaign objectives. Reddit offers a minimum advertising budget of $5 per day and allows advertisers to structure their campaigns based on impressions, video views, or an auction-style cost-per-click model (CPC). Impressions are typically purchased on a cost-per-mille (CPM) basis, meaning that a set amount is charged for every 1,000 impressions. For video ads, the cost-per-view (CPV) metric tracks user engagement.

Meanwhile, auction-style CPC ads start at a minimum bid of $0.20, with the total bid cost fluctuating based on the competition's budget. It's worth noting that managing these dynamic pricing structures requires consistent management to ensure cost-effectiveness. While the average Reddit ad cost-per-click is $3.50 in the US, actual costs may be significantly higher or lower depending on competition levels. Although the platform's pricing system might appear challenging to new media planners and buyers, Reddit offers suggestions based on the target audience. This helps advertisers set the most appropriate price.

-Use the Right Ad Type: Reddit offers four primary types of ad creatives including text ads, image ads, video ads, and carousel ads. "These ad types are easy to use but you must always adhere to Reddit's standard aspect ratios and specifications, such as 1:1, 4:5, and 16:9," explains Avi-Meir.

Unlike other social media platforms, Redditors don't respond well to salesy content. But advertisers can achieve more if they understand the platform's unique culture, use compelling ad copies and catchy images or videos, and optimize ads to get the user's attention.

Avi-Meir Zaslavsky
999Avi
support@999global.com

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