The story: Reddit is repositioning itself as a lower-funnel ad platform with a strong focus on shopping and product recommendations. Over the past year, the platform has introduced new ad formats, including Dynamic Product Ads (DPA), which lets advertisers upload their product catalogs and surface relevant items to users based on their community interests. According to Jim Squires, Reddit’s EVP of Business Marketing & Growth, Reddit is “inherently commercial” because users naturally seek out recommendations from other users and communities. Squires shared that every second, two Redditors ask for a recommendation and receive 14 recommendations back.
Since going public last year, Reddit has experienced a remarkable 39% year-over-year growth in ad revenue. Squires shared with ModernRetail that with the launch of DPA, advertisers are seeing “as much as 2x return on ad spend” compared to other objectives. Additionally, 73% of users follow the recommendations they receive on Reddit when making large purchases, showcasing the platform’s effectiveness in influencing the buying journey.
The takeaway: Reddit’s recent ad revenue success shows advertisers the importance of relevant, word-of-mouth advertising, and most importantly, authenticity. Squires notes, “the more relevant the product is -- and the more authentic [and] interesting and compelling it is -- the better it’s going to be received.” As the platform continues to expand its shopping functionalities and integrate more merchants, advertisers have a growing opportunity to tap into Reddit’s unique blend of search and social behaviors for lower-funnel marketing strategies.
One year ago, the Association of National Advertisers (ANA) released Part 1 of its Programmatic Media Supply Chain Transparency Study, which uncovered a startling $22B of programmatic waste -- annually. Now, the ANA and TAG TrustNet are sharing improvements, with these figures to back it up:
Introducing Kevel Kai: A New Retail Media AI Feature Set
Kai (Kevel Artificial Intelligence) is Kevel’s suite of AI and machine learning technologies that enable performance optimization and drive relevancy, profitability and revenue. Kai is available as part of the Retail Media CloudTM, the ultimate SaaS platform for building retail media networks.
Learn more about the masterminds behind Kai and its two new features in our press release here.
Kevel x Retail Dive “Driving Advertiser Performance While Improving Sales: Why You Need to Upgrade Your Retail Media Platform”
This July 18th at 2:00 (EST), ad tech experts James Avery and Shamim Samadi will explore why now is the time for retailers to upgrade their retail media platforms in this Retail Dive Webinar. Topics include:
Register for the webinar here.
WATCH --> This episode of the ADOTAT Show with Pesach Lattin features David Pollet, CEO of Incremental, talking about all things incrementality (and how it’s the holy grail for marketers). Other topics include cookies, the critical role of retail media, and how AI and ML could redefine media measurement in the next five years.
READ --> Retail media is booming as retailers, airlines, and restaurants launch their networks to enable in- and out-of-store marketing to consumers and prospects. Street Fight Mag breaks down retail media, AI, and how combining the two could sell more, build loyalty, and increase efficiency.
LISTEN --> Dive into the intricacies of programmatic curation, SPO, and the unique value of private deals in Episode 150 of The Programmatic Digest with Hélène Parker. Don't miss this deep dive into how curated packages from publishers, agencies, and data providers are revolutionizing transparency and audience reach in the ad world (Listening time: 34:33).
