Reddit ads are good to build frequency on the retargeting side, particularly with audiences that don’t spend much time on other social sites (meta, linkedin, etc.).
But their prospecting sucks unless you’ve got a product that’s so generic that you can just spray and pray for the highest audience and lowest CPM/CPC. Most of the challenge is because their targeting is abysmal and there are so many bots crawling reddit that the bot clicks are off-the-charts high.
Reddit continues to try to add all these contextual advertising options and fails to understand that their biggest value is in actual user behavior. People literally subscribe and comment in subs that they are interested in; it’s so much deeper data than meta ever had on users. If I’m selling an espresso machine, I don’t just want to put an add in /r/coffee but also get people who have higher incomes (/r/henryfinance or /r/fatfire or the other higher income subreddits) who have shown an interest in coffee (either in that sub or in contextual conversations). And if I know that user regularly browses both, I’m fine with that ad showing up on /r/pics or whatever other sub they happen to be viewing at the time.
Even here the keyword targeting is nerfed compared to other ad channels. It’s focusing on placing ads around the keyword, not users regularly behaving with the keyword. Take something like tiktok, which builds audiences based on people who have engaged with specific hashtags over the last 7 days. If I know someone engaged with #espresso recently, I can feel confident that serving them an ad is at least somewhat timely. Reddit could just be a post of “wow look at my new espresso machine” on /r/pics, the ad serves under it, and a couple million impressions go to waste.
Content-based ads have mostly gone by the wayside years ago. Everyone moved to more programmatic and user-based targeting. Reddit is 5+ years behind the curve here because they continue to view their site and ad platform through the lens of ‘niche content’ instead of ‘users engaging with niche content’.
Just a limited ad platform with no vision or functionality for serious advertisers. It’s fine in a handful of use cases but they need to rework the entire targeting side to ever make it more than throwaway amount of spend in the total media budget.