Reddit announced its foray into performance advertising this week, with the launch of Cost-Per-Click ads.
Following the redesign of its website, and the launch of autoplay native video ads last year, Reddit is getting its first performance-based ad unit this week. Cost-per-click (CPC) ads, announced on Wednesday, are available for reach, video views, traffic and conversions objectives, and advertisers can buy them through the Reddit ad dashboard. The new ads come to complement Reddit’s current cost-per-impression (CPM) and cost-per-view (CPV) ad offerings.
And while CPC ads aren’t a new thing “the launch marks a big moment for the Reddit Ads business,” explains Reddit VP of brand partnerships Zubair Jandali. “This is a point of inflection that helps get us to parity in the market and will change the way advertisers think about our capabilities.”
The new ad units give advertisers the ability to implement direct response campaigns on both desktop and mobile and can be delivered as links or Promoted Posts, which can also include video. Most advertisers in the beta group testing the new ad unit saw improved ROI by up to 50%, and that’s also encouraging. However, according to a recent AdWeek report, some agencies have so far reported that they are not impressed.
We will just have to see, as CPC ads are only one of the new performance-based ads that Reddit is planning. The next step will be for the platform to improve ad targeting, reporting and campaign management to further increase that ROI.
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