Reddit has unveiled a new advertising format that mirrors the appearance of user-generated posts, as part of its preparations for an initial public offering (IPO). Announced on Thursday, these “free-form ads” aim to blend seamlessly with the organic content shared by users, potentially boosting advertiser engagement. However, the integration of ads that resemble standard posts might not be warmly received by all users.
This innovative format allows advertisers to craft ads using a combination of images, videos, and text, leveraging templates for ease of use. Inspired by Reddit’s highly engaging megathreads, free-form ads are designed to quickly deliver pertinent information to readers, making them ideal for product launches or brand introductions to new audiences.
Despite their promotional nature, these ads will be distinguishable from regular posts by a “Promoted” label next to the advertiser’s name, maintaining transparency with users.
Initial tests have shown that free-form ads surpass other ad types in terms of click-through rate (CTR) by 28%, and also encourage greater community interaction when comment features are activated.
Jim Squires, Reddit’s EVP of Business Marketing and Growth, highlighted the flexibility and creative potential of free-form ads in a blog post, noting their ability to harmonize with Reddit’s unique content and community dynamics while also achieving significant performance metrics and brand visibility.
Available now globally via the Reddit Ads Manager, this ad format represents part of Reddit’s broader strategy to attract more brands to the platform and encourage them to become active advertisers. This move follows closely after the introduction of Reddit Pro, a set of tools aimed at helping businesses establish and expand their organic presence on the platform, signaling Reddit’s intention to bolster its advertising ecosystem.
