Reddit tests ads in search results as traffic declines

Summarised from 3 outlets · Updated 4 Nov, 01:51 · Archive

Reddit is testing ads within its search results, targeting users based on contextual relevance to their queries.

Reddit is testing advertisements within its search results pages. The ads will appear based on contextual relevance to users' search queries, according to the company's announcement. For example, searching for 'espresso station' could display ads for espresso machines, coffee beans, or mugs, while a search for 'home office setup' might show ads for monitors, desks, or office chairs.

The company is conducting an initial test with a select group of eligible advertisers. Reddit said it will evaluate user responses during the test to refine the experience for both users and advertisers over time.

The new ad placement comes as Reddit faces significant challenges from changes in how people discover its content. The company recently warned investors about declining search traffic referrals resulting from Google's move to an AI-powered search experience. Despite beating Wall Street's estimates for revenue and earnings per share in its third-quarter results, Reddit's stock declined after the company provided fourth-quarter guidance below expectations.

The search ads are part of a broader effort by Reddit to monetise its existing user base as external traffic sources diminish. The company is also implementing other changes to its platform, including restricting logged-out users from most content and limiting access to 'Old Reddit'. Reddit's CEO Steve Huffman said that moving to a logged-in-only model would help improve ad targeting on the platform.

Reddit currently displays ads across its feeds in various formats, including images, videos, sponsored posts, and AMAs, as well as within threads. The company has indicated that the search ad format would eventually expand beyond the initial test group of advertisers.

How it is being reported

• Reddit is testing in-app search ads as traffic from Google declinesThe company wants to help advertisers reach users who show a "high purchase" intent.Engadget · 3 Nov, 21:27
• Reddit tests ads in search results as traffic declines and growth concerns mountThe new ad placements could help Reddit squeeze more revenue from existing users as Google's AI search changes how people discover its content.TechCrunch · 3 Nov, 19:24
• Reddit is adding more adsReddit is testing ads on another area of its platform: search. With this update, ads will appear within your search results "based on a range of factors, including contextual relevance to a search query," according to Reddit. That means searching for "espresso station" could present you with ads for espresso, machines, beans, or mugs, while […]The Verge · 3 Nov, 18:26

In this story: Reddit · Google · Steve Huffman

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