businessLIVE
Reddit to Place Ads in App Search Results and Measure User Response
You can expect to see more ads in the Reddit app as the platform begins placing them in search results.
Key points
- Reddit says the ad test is an initial trial with a select group of eligible advertisers.
- Reddit's U.S. daily active users dropped from 53.2 million in Q2 to 50.7 million in Q3.
- Reddit's fourth-quarter guidance predicted sales of $1 billion to $1.03 billion, below expectations of $1.05 billion.
Why it matters. The ad test and planned logged-in shift are Reddit's effort to earn more revenue from existing users, as the company warned that daily active users could decline further if the trend continues.
You can expect to see more ads in the Reddit app as the platform begins placing them in search results. The company says that it will be evaluating how users respond to the development … Reddit’s announcement says that ads will be based on a range of factors, including the search query. A search for “espresso station” could surface ads for espresso machines, coffee beans, or mugs. A search for “home office setup” could surface ads for monitors, desks, or office chairs.
Latest updates
Reddit to Place Ads in App Search Results and Measure User Response
9to5Mac reports that Reddit will begin showing more ads in its app, starting with search results. The company said it will evaluate how users respond to the change. According to Reddit's announcement, ads will be selected based on a range of factors, including the search query a user enters. The move expands the platform's advertising beyond its existing placements. The report does not specify when the change will reach all users or what revenue impact the company expects.
Reddit Tests Ads in Search Results as Search Traffic Declines
Reddit said on Tuesday that it has begun testing ad placements in its search results pages. The test lets advertisers reach users as they search for products and recommendations. The company days earlier warned investors about declining search traffic and a weaker-than-expected revenue forecast. The company is looking for ways to earn more revenue from existing users as Google's AI search changes how people discover Reddit content.