Reddit Rolls Out Dynamic Product Ads Beta, First New Ad Option Since IPO

Reddit will likely step up the creation of new advertising services since going through an initial public offering (IPO) in March.

In public beta, the company on Wednesday released Dynamic Product Ads, the newest addition to its shopping suite.

Building out post-IPO services is common for a newly public company as it looks for opportunities to gain revenue to please investors.

Reddit says it launched this ad unit “to support the behavior” -- changing consumer behavior. 

Dynamic Product Ads combine shopping signals with machine learning and advertiser product catalogs.

The combination works to serve the most relevant products and aims to convert high-user intent by connecting people with the products they look for, Reddit says, allowing advertisers to reach potential customers while they actively search, discuss and make a purchase.



Reddit advertisers already benefit from the company’s recent partnership with Google, where user posts serve up in the engine’s search queries.

The company estimates that Dynamic Product Ads drove 1.9x greater Return on Ad Spend (ROAS) when compared with conversion objective campaigns, based tests run in the first quarter of 2024.

During the coming years, the company said it intends to invest in advertising and organic shopping solutions to build on Reddit’s shopping conversations, and provide more opportunity to ecommerce brands.

This will include tools and features such as new shopping ads formats like collection ads that are intended to enhance the shopper experience while driving performance; merchant platform integrations that welcome smaller merchants onto our platform; and other products that will simplify the path to purchase on Reddit.

People add the word “reddit” to their search queries more than 32 billion times, according to the company, citing data comes from the Google search console, December 2022 – November 2023, “Reddit” report in Google search.

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