Now approaching its 20th anniversary, Reddit has transformed from a tiny startup site founded by two college roommates to a formidable platform for marketers. In 2025, Reddit advertising strategies and campaigns offer brands unique opportunities to engage with highly targeted consumers and win their business. If you’ve never considered Reddit as a pathway toward greater lead generation and conversions for your brand, now might be the time to give the social channel its moment in the sun.
After years of guiding clients through the ebbs and flows of digital marketing and social media advertising, the (amp) team has firsthand experience with the marketing potential of Reddit as a targeted advertising platform – and we're ready to share our knowledge. Join (amp) as we outline and explore Reddit’s capacity to serve search ads to your company's most responsive shoppers and propel your brand to new heights.
Exploring the Reddit Phenomenon: The Explosion of Online Community
Reddit was launched in 2005 as a community-led news website; founders Steve Huffman and Alexis Ohanian wanted to create a space where users could connect over shared interests, participate in discussions, and share relevant content. Little did they know that after only a few short decades, the platform would surge in popularity to become the ninth most visited website in the world. At last count, Reddit hosted a staggering 504.54 million users. That’s more than half a billion consumers gathered in one digital space, 44% of which are 18 to 29 years old – prime target audiences for thousands of brands just like yours.
What’s more, at Reddit's successful IPO in March 2024, the platform was valued at $6.5 billion on 2023 revenues of $804 million. A shocking 98% of that revenue was driven by, you guessed it, ads. Fast-forward to Q4 of that same year, and
Reddit surpassed Wall Street expectations with a 250% post-IPO stock surge. That kind of return is both surprising and staggering for a fairly new social media outlet, so how did Reddit manage to morph its online space into a springboard for businesses to engage with diverse audiences in such a seemingly short timeline?
Understanding Reddit as a Marketing Platform: How Reddit Turns Profits Via Targeted Ads
Reddit advertising strategies are nothing if not finely tuned into the modern shopper, and as the platform continues to grow at breakneck speeds, CFO Drew Vollero says Reddit is on its way to becoming “very profitable, very quickly.” Analysts agree, noting the company’s more recent commitment to targeted advertising as its primary source of revenue.
Within the past year, Reddit advertising strategies have leaned hard into social media advertising, capitalizing on advancements in machine learning to place more relevant ads on users’ feeds. Relevant advertising translates to more consumer clicks – and ultimately, more revenue for the company. Reddit has also worked hard to form partnerships with major brand agencies, Google and OpenAI, household names like Samsung and Ulta Beauty, and massive conglomerates like the NFL and NBA. Together, these social media advertising tactics helped Reddit generate 90% of its total revenue in last year’s second quarter.
Thanks to Reddit’s unique community structure and high-engagement subreddits, the platform has been able to quickly scale their social media advertising and leverage users’ preference for authentic, community-driven content. Reddit marketers also know that users will quickly call out any marketing or advertising that seems disingenuous, tone-deaf, or in direct opposition to the platform’s signature vibe of camaraderie and inclusivity.
Nailing Down Reddit Advertising Strategies: Find Your Niche Opportunity for Growth
It’s clear that creating Reddit advertising strategies for your brand is a worthwhile next step, but figuring out just how to break through the noise and – to pay homage to the platform – “find your niche,” you'll need to examine a few critical aspects of your brand:
The Benefits and Challenges of Reddit Advertising
Every social media advertising platform and strategy comes with both benefits and challenges. The goal is to sift through the opinions, drill down to facts, and get brutally honest about whether or not a channel’s marketing capabilities align with your company’s needs. Here are a few challenges about Reddit targeted advertising that are worth mentioning:
On the other hand, Reddit also offers unique benefits that make it well worth considering as you consider future marketing and advertising strategies for your brand:
Before a brand dives headfirst into Reddit targeted advertising, it’s important to know when to enter the metaphorical room loudly and when to hold back. You can begin the process on your own, or partner with a professional marketing agency like (amp). Either way, your first step should be to identify the subreddits that align with your values and products; this will determine future best-fit communities. Next, spend time learning about what your audience needs and wants.
Third – and this step is possibly the most critical – engage with users on their personal topics of interest before you start promoting your brand. It’s of the utmost importance that you establish yourself as an authentic voice and align your brand with the Reddit community’s ethos before pitching your products and services. Lastly, make informed, strategic ad-placement decisions to avoid negative feedback.
Starting a new form of social media advertising can be daunting. If you’re overwhelmed or just unsure about getting started with marketing on Reddit, you’re not alone! The experienced team at (amp) is familiar with the challenges and opportunities of the platform, and we’re here to help your brand leverage this unique opportunity. Give us a call today to get started.