Reddit announced on Wednesday it is launching cost-per-click (CPC) ads, the platform’s first performance-based ad unit. The CPC ads can be bought through the Reddit ad dashboard and will “complete the suite” of Reddit’s ad offerings, along with cost-per-impression (CPM) and cost-per-view (CPV) ads.
Why you should care
After a complete redesign of its website — the first in over a decade — Reddit is building out its ad offerings to attract more brands to the site. The new CPC ad units will allow advertisers to implement direct response campaigns across desktop and mobile, and will be delivered as either a link or Promoted Posts (video included).
“While cost-per-click advertising isn’t innovative, in itself, the launch marks a big moment for the Reddit Ads business. This is a point of inflection that helps get us to parity in the market and will change the way advertisers think about our capabilities,” said Reddit VP of brand partnerships Zubair Jandali in the announcement for the CPC ads.
According to Reddit, the new bid-type ad offering is the first major step the company has taken to ramp up its performance business and will open up more ad inventory on the site. Reddit’s CPC ad campaign objectives including reach, video views, traffic and conversions.
More on the news
- Reddit’s CPC ads are the first ad product launched since the company hired Shariq Rizvi as its VP of Ads Products & Engineering earlier this month.
- Wayfair, Hired and Kabam are among a select group of brands that were given early access to the CPC ads. Reddit reports most advertisers in the beta group have improved return on ad spend by up to 50 percent.
- Reddit says its CPC ads are the first of several upcoming performance offerings, with enhancements to ad targeting, reporting and campaign management tools to come.