New freeform ad format on Reddit: What does it mean for users and advertisers?
Reddit announced Thursday the introduction of a new ad format that resembles the posts users make on the platform. The move comes as Reddit prepares for its initial public offering (IPO). The new ad format, called free-form ads, is designed to resemble the content users share with each other, with the goal of helping advertisers maximize engagement.
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While the new format may be attractive to advertisers, ads that look like regular posts may not be a pleasant addition for users.
Advertisers can use this format to combine multiple media types, including images, videos, and text, using pre-made templates. Reddit says the ad format is inspired by one of the platform’s most popular post types, the “megathread,” which is a kind of hub for discussions about popular topics. Similar to megathreads, free-form ads are designed to help readers quickly get the information they need. The company says the new ad format would be a good way to do things like launch a product or introduce a brand to a new audience.
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As with other ads on Reddit, users will be able to distinguish free-form ads from regular posts through a “Promoted” label that appears next to the company name in a post.
In initial tests of the new format, Reddit found that free-form ads outperformed all other ad types by 28% in average click-through rate (CTR), while also increasing community engagement when comments are enabled.
“Freeform ads give advertisers the flexibility to create an ad of any length, using multiple media types, with a look and feel that’s native to the platform,” said Jim Squires, Reddit’s EVP of Business Marketing and Development, in a blog post. “This format encourages a mix of content, context, and creativity from brands, while driving strong performance and brand awareness.”
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The new ad format is available today to all advertisers on Reddit globally through the Reddit Ads Manager.
Today's announcement comes just days after Reddit launched a suite of tools called Reddit Pro. The aim of these tools is to help businesses develop a physical presence on the platform.
Reddit is likely looking to attract more brands to its platform and potentially convert them into paying advertisers. This launch marks the first time Reddit has offered free tools to help businesses with their social media strategy.
Source: techcrunch
