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Reddit Ads: A Complete Guide to Advertising on Reddit

reddit ads

For advertisers, this creates an opportunity to reach audiences not only based on general characteristics but also on their interests and activity within specific communities.

Reddit Ads lets brands advertise in this environment using different ad formats, targeting options, and campaign settings. In this guide, we’ll explore how Reddit’s advertising platform works and what you need to know before launching your first campaign.

What Is Reddit Ads and How Does the Advertising Platform Work?

Reddit Ads is Reddit’s advertising platform, allowing brands to place ads in users’ feeds, topic-based communities (subreddits), and conversations. It operates on an auction model: advertisers define their campaign objective, audience, budget, and bidding strategy, while the system distributes impressions based on these settings.

One of the key features of Reddit Ads is the ability to target users based on their interests and activity within specific communities, helping advertisers reach audiences interested in relevant products or services.

Self-Serve and Managed: Two Advertising Models

Reddit offers two ways to work with its advertising platform:

Under the managed model, advertisers can also work with KarmaLab, Reddit’s creative team, which helps adapt advertising ideas to the platform’s unique environment.

How to Create a Reddit Advertising Account

To start advertising, go to Reddit Ads, sign in with an existing Reddit account or create a new one, enter your company details, and add a credit or debit card. Businesses are advised to use a separate account that is not linked to an employee’s personal profile.

Once registration is complete, you can start creating campaigns in Reddit Ads Manager. However, a payment method must be added and verified before ads can be published.

Reddit Ads Campaign Structure

Reddit Ads uses a three-level campaign structure: Campaign → Ad Group → Ad. Each level is responsible for different settings, from the overall campaign objective and budget to audience targeting and ad creative.

LevelKey Settings
CampaignCampaign objective, daily or lifetime budget, campaign schedule.
Ad GroupTargeting, placements, bidding strategy, and ad schedule.
AdAd creative: headline, copy, image or video, call-to-action (CTA) button, and destination URL.

This structure makes it possible to manage different audiences and ads within a single campaign. For example, you can create separate ad groups for interest and community targeting, and test several creatives within each one.

However, there are two important limitations to consider: once a campaign has been created, its objective cannot be changed, and separate ad groups are used to allocate budgets across different audiences.

When creating a campaign, Reddit Ads offers two modes:

Campaign Objectives

The Campaign Objective determines the result your campaign will optimize for, which ad formats will be available, and which pricing model will apply.

Reddit Ads offers five main campaign objectives:

Campaign ObjectiveOptimization GoalPricing Model
Brand Awareness & ReachMaximize impressions and audience reach.CPM — cost per 1,000 impressions.
TrafficDrive users to a website or landing page.CPC — cost per click.
ConversionsGenerate desired actions on a website, such as purchases or sign-ups.CPC — cost per click.
App InstallsEncourage users to install a mobile app.CPC — cost per click.
Video ViewsMaximize views of video ads.CPV — cost per video view.

The selected objective also determines which ad types are available. For Brand Awareness & Reach, advertisers can use text ads, image-based link ads, and video ads. Traffic, Conversions, and App Installs support link and video ads, while Video Views is limited to video ads.

In addition to standard campaign setup, Reddit offers MAX Campaigns — an automated campaign type available for Traffic and Conversions objectives. It uses AI to optimize targeting, creative selection, placements, and budget allocation. We’ll explore its capabilities in more detail in a separate section.

Reddit Ad Formats

Reddit Ads supports a variety of ad formats, ranging from standard image and video ads to interactive posts, product ads, and premium placements. The right format depends on the campaign objective, target audience, and how the brand wants to engage with users.

Standard Ad Formats

Most ad formats are available through Reddit’s self-serve platform without the need to work with a Reddit representative.

AMA Ads: Branded Q&A Sessions

AMA (Ask Me Anything) is an open discussion format where brand representatives answer questions from Reddit users.

The platform offers two approaches:

AMAs require active participation from a brand representative. It is generally recommended to set aside at least an hour to answer questions, verify the host’s identity, and be prepared to address critical questions.

The effectiveness of this format should be evaluated not only through CTR or CPL but also through participant engagement, depth of discussion, brand mentions, and changes in branded search activity.

Premium Ad Formats: Reddit Takeovers

For campaigns focused on large-scale reach, Reddit offers premium placements available through the managed model:

These formats are primarily used to increase brand awareness and support new product launches. Placement terms and minimum budgets are arranged directly with a Reddit representative.

Placements and Technical Requirements for Ad Creatives

Reddit Ads supports two main placement types: Feed — within users’ feeds, and Conversations — within discussions. In the Feed, ads can appear in Compact and Card formats, so it is important to check how your creatives look across different placements before launching a campaign.

Key technical specifications:

ParameterSpecifications and Recommendations
ImagesJPG, PNG; recommended aspect ratio — 4:5 (1080 × 1350 px).
Image size3–20 MB depending on the format and placement.
VideoMP4 or MOV, H.264 codec; up to 1 GB, with up to 512 MB and a duration of up to 60 seconds recommended.
Carousel2–6 cards; recommended size — 1080 × 1080 px (1:1); 16:9 is also supported.
HeadlineUp to 300 characters; 80–100 recommended.
Image captionUp to 50 characters.

Technical requirements may change, so it is worth checking the current specifications in Reddit Ads Manager before uploading creatives.

To adapt images for different placements, advertisers can use the Crop Image feature, while videos can be uploaded with a custom thumbnail. When preparing video creatives, it is also important to consider mobile viewing and capture users’ attention within the first few seconds.

Reddit Ads Targeting: How to Find the Right Audience

Reddit Ads allows advertisers to target users based on topic-based communities, interests, and user behavior, as well as reach people who have already interacted with the brand. Advertisers can combine different targeting approaches depending on the campaign objective and the characteristics of their target audience.

Community, Interest, and Keyword Targeting

Reddit offers three main types of topic-based targeting:

These targeting methods can be combined. Reddit can also automatically expand reach by considering similar keywords, communities, and interest categories.

Geographic, Demographic, and Device Targeting

Reddit Ads offers additional targeting options to further refine your audience:

These settings allow advertisers to tailor campaigns to specific product requirements, for example, by limiting ad delivery to a particular geographic area for a local business or selecting an operating system when promoting a mobile app.

Custom Audiences, Retargeting, and Lookalike Audiences

Through Audience Manager, advertisers can create custom audiences to re-engage users or reach new potential customers.

Key options include:

Lookalike Audiences are created using an existing seed audience. The approximate minimum audience size is around 1,000 users for customer lists and 10,000 users for website retargeting audiences.

Custom Audiences can be used to either include or exclude users from targeting. To build audiences based on website events, advertisers need to set up Reddit Pixel or Conversions API.

Automated Targeting and Audience Expansion

Automated Targeting (Audience Expansion) allows advertisers to automatically expand their reach beyond the initial targeting settings. The system identifies additional users based on selected keywords, communities, and interests, and optimizes ad delivery according to the campaign objective.

This feature helps prevent audiences from becoming too narrow, although actual reach may extend beyond the initially selected audience segments.

Audience Size and Targeting Limitations

When setting up a campaign, it is important to consider the potential audience size. Overly narrow targeting can limit ad delivery and increase the cost of advertising results.

Key guidelines include:

Potential reach estimates in Reddit Ads Manager are approximate: they do not guarantee the actual number of users reached and should not be considered equivalent to Reddit’s active audience metrics (DAU/MAU).

How Much Does Reddit Advertising Cost? Budgets and Bidding

Reddit Ads operates on an auction-based model: advertisers set their budget and bidding strategy, while the actual cost depends on the campaign objective, competition for the target audience, and the quality of the ad creatives.

Pricing Models: CPM, CPC, and CPV

Reddit Ads uses three main pricing models depending on the campaign objective:

Pricing ModelHow You PayCampaign Objectives
CPM (Cost per Mille)Per 1,000 impressionsBrand Awareness & Reach
CPC (Cost per Click)Per clickTraffic, Conversions, App Installs
CPV (Cost per Video View)Per video viewVideo Views

Bidding Strategies and Minimum Budgets

Reddit uses a second-price auction model: the actual cost depends on competing bids and does not necessarily equal the advertiser’s maximum bid.

Three main bidding strategies are available to manage ad spend:

The minimum daily budget is approximately $5. However, for A/B testing audiences and creatives, a budget of at least $50 per day per campaign is recommended.

Advertisers can set either a Daily Budget — the amount spent per day — or a Lifetime Budget — the total amount allocated for the entire campaign period.

Estimated Cost of Advertising on Reddit

According to third-party agency estimates for 2026, Reddit advertising costs generally fall within the following ranges:

Pricing ModelEstimated Cost
CPC$0.50–$3.50 per click, most commonly $0.75–$2.00
CPM$3–$12 per 1,000 impressions
CPV$0.02–$0.08 per video view

These are third-party estimates, not official Reddit rates. Actual costs depend on the audience, competition, ad format, and creative quality.

When planning a budget, advertisers should consider not only market benchmarks but also the results of their own test campaigns, which can help determine the actual cost of reaching and acquiring their target audience.

MAX Campaigns: AI-Powered Advertising Automation

MAX Campaigns is an automated Reddit Ads campaign type that uses AI to optimize targeting, creatives, placements, and budget allocation. It supports Traffic and Conversions objectives.

Reddit introduced MAX Campaigns in January 2026 as part of a beta test, and as of September 2026, this campaign type became available to all advertisers.

How MAX Campaigns Work

Advertisers upload multiple variations of headlines, creatives, and calls to action (CTAs), after which the system automatically combines them and optimizes ad delivery.

Automation covers four key areas:

At the same time, advertisers retain the ability to manually control certain campaign settings.

Reddit Community Intelligence and Reporting Features

MAX Campaigns use Reddit Community Intelligence — a data analysis technology built on insights from more than 23 billion posts and comments. It allows the system to consider discussion topics, user interests, and behavioral signals when optimizing advertising.

To analyze campaign performance, Reddit offers Open-box Reporting. In particular, the Top Audience Personas tool highlights high-performing audience segments and topic-based communities, helping advertisers understand which groups of users are driving conversions.

MAX Campaigns Testing Results

According to Reddit, more than 600 advertisers participated in the alpha testing of MAX Campaigns. In split tests, automated campaigns delivered, on average:

These figures reflect Reddit’s early testing results and do not guarantee similar performance for other advertisers.

MAX Campaigns can also be managed through the Reddit Ads API, including via third-party advertising tools such as Smartly.

How to Use Reddit Ads Manager

Reddit Ads Manager is a tool for creating, launching, and managing advertising campaigns on Reddit. Advertisers can use it to configure audiences, budgets, and creatives, analyze campaign performance, and optimize active campaigns.

Key Sections of Reddit Ads Manager

Reddit Ads Manager brings together tools for managing campaigns, audiences, analytics, and advertising accounts.

SectionPurpose
CampaignsCreate campaigns, set objectives and budgets, and manage campaign statuses.
Ad GroupsConfigure audiences, placements, bids, and ad schedules.
AdsCreate and edit ads, creatives, links, and CTAs.
Audience ManagerManage custom audiences, retargeting, and Lookalike Audiences.
Reporting / DashboardAnalyze advertising metrics and create reports.
Events ManagerSet up and verify Reddit Pixel and Conversions API.
BillingManage payments and view billing documents.
Business ManagerManage advertising assets and user access permissions.

Dashboard: Metrics, Filters, and Reporting

The Dashboard allows advertisers to track campaign performance, compare results, and identify opportunities for optimization.

Key reporting tools include:

Reddit Ads Manager also supports CSV data exports and automated scheduled reports.

When analyzing performance, keep in mind that caching may cause data to update with a delay of up to 15 minutes. Reporting history is retained for 24 months, and the default time zone is UTC.

Campaign Management and Bulk Editing

Through the More Options menu, advertisers can edit campaign settings, review change history, test creatives, and duplicate or archive advertising assets.

The Bulk Edit feature allows advertisers to make changes to multiple campaigns, ad groups, or creatives at the same time.

There are two important limitations to keep in mind: a campaign objective cannot be changed after the campaign has been created, and archiving a campaign also archives all associated ad groups and creatives.

Tracking Advertising Results: Reddit Pixel and Conversions API

To evaluate advertising performance, it is important to track not only impressions and clicks but also the actions users take after interacting with ads, such as sign-ups, lead submissions, adding products to cart, and purchases.

For this purpose, Reddit Ads offers two tools: Reddit Pixel for browser-based tracking and Conversions API (CAPI) for server-side data transmission. They help advertisers analyze conversions, build retargeting audiences, and optimize campaigns.

Reddit Pixel: Browser-Based Conversion Tracking

Reddit Pixel is a JavaScript code snippet installed on a website that sends information about user actions to Reddit.

To set it up, advertisers need to create a Pixel in Events Manager, install the code directly on the website or through Google Tag Manager, configure the required events, and verify that they are being transmitted correctly.

However, browser-based tracking has certain limitations. Pixel performance can be affected by ad blockers, browser privacy mechanisms such as Intelligent Tracking Prevention (ITP), and user consent settings. As a result, some events may not be sent to the advertising platform.

Conversions API: Server-Side Data Transmission

Reddit Conversions API (CAPI) allows advertisers to send conversion data directly from their server to Reddit. This reduces reliance on browser-based tracking and complements the data collected through Reddit Pixel.

Two components are required to set up CAPI:

The token is generated via Events Manager → Conversions API → Generate Token. It is displayed only once and does not expire automatically, so it should be stored securely.

CAPI can be implemented through server-side Google Tag Manager, a Shopify integration, CDP platforms such as Tealium or Commanders Act, or a custom server-side integration.

However, server-side data transmission alone does not guarantee complete conversion tracking. Data quality depends on correct implementation, the parameters being passed, and compliance with user consent requirements.

Standard Events and Conversion Deduplication

Reddit supports standard events that can be sent through Pixel, CAPI, or both tools simultaneously.

EventWhat It Tracks
PAGE_VISITPage visits
VIEW_CONTENTContent or product views
SEARCHSearches on the website
ADD_TO_CARTProducts added to cart
ADD_TO_WISHLISTProducts added to a wishlist
SIGN_UPUser registrations
LEADLead submissions
PURCHASECompleted purchases

For specific actions, advertisers can also configure Custom Events.

Why Use Pixel and CAPI Together?

Combining browser-based and server-side tracking helps reduce data loss and provides Reddit with additional signals for campaign optimization.

However, when the same event is sent through both channels, there is a risk of counting the same conversion twice. To prevent this, Reddit uses Event Deduplication.

Each actual event is assigned a unique Conversion ID, which must be identical when the event is sent through both Pixel and CAPI. For example, if a user completes a purchase, both tools should send the PURCHASE event with the same identifier. This allows Reddit to recognize duplicate events and avoid counting the same conversion twice.

Event transmission and deduplication should be verified in Events Manager.

Billing, Payments, and Access Management

To manage advertising spend and employee access, Reddit provides two main tools: Billing for financial operations and Business Manager for managing advertising accounts and company assets.

Payment Methods and Billing in Reddit Ads

In self-serve accounts, advertising is paid for by credit or debit card. For larger advertisers using the managed model, Monthly Invoicing may be available upon agreement with a Reddit representative.

Reddit Ads uses a Billing Threshold system. Advertisers are automatically charged once the set threshold is reached at the end of the day, or at the end of the month if the threshold has not been reached. As a result, multiple charges may occur within a single month.

The initial threshold for new accounts is typically relatively low and may change based on payment history. An individual charge may sometimes exceed the threshold if additional advertising costs accumulate before the payment is processed.

In the Billing section, advertisers can view transaction history and download billing documents. Before launching ads, it is worth checking company details and tax settings, as Reddit may require a Tax ID depending on the country.

If the account has Ad Credits, they are automatically applied to eligible advertising costs. If a payment fails, Reddit may pause campaigns until the payment issue is resolved.

Business Manager: Roles and Access

Reddit Business Manager allows advertisers to centrally manage advertising accounts, profiles, audiences, and employee access permissions.

Access can be configured at two levels:

To invite an employee, go to the Members section, enter their email address, select a business-level role, and assign permissions for the relevant advertising accounts. The invitation status can be checked in the Invitations section.

Business Manager also supports Shared Audiences, allowing audiences to be shared across advertising accounts. Creating new advertising accounts directly through Business Manager is available only under the managed model.

Reddit Advertising Policy: Restrictions and Moderation

Reddit sets requirements for advertised products, ad content, landing pages, and interactions with users. Violating these rules may result in ads being rejected, campaigns being suspended, or the advertising account being blocked.

Prohibited and Restricted Advertising Categories

Reddit divides advertising categories into prohibited and restricted categories, which may require additional documentation or prior approval.

Prohibited categories include:

Restricted categories include alcohol, gambling, dating services, cryptocurrency products, pharmaceuticals and healthcare services, weight-loss products, and trailers featuring adult-oriented content. Separate rules apply to political advertising and ads related to socially significant issues.

The ability to advertise these categories depends on the country, applicable legal requirements, and the outcome of advertiser verification. A product being legal in a particular market does not automatically mean it can be promoted through Reddit Ads.

In addition, NSFW communities and quarantined subreddits are not available for ad targeting. Moderators of individual communities may also restrict certain advertising categories.

Advertiser Requirements and Comment Moderation

Reddit may require advertisers to verify their identity, provide company information, or submit additional documentation for certain advertising categories.

Key requirements for advertising materials include:

Because Reddit is built around discussion, advertisers should plan their approach to comment moderation in advance. The platform allows moderation of spam, threats, harassment, hate speech, and illegal content. At the same time, critical user feedback should be distinguished from policy violations and, where possible, addressed openly.

Ad Review and Reasons for Rejection

Before ads can begin running, they go through an Ad Review process. Reddit evaluates the ad content, the advertised product, and the landing page for compliance with its advertising policies.

During the review process, the ad has a Pending Approval status. If a violation is identified, the ad receives a Rejected / Not Approved status, and the advertiser is notified of the reason for rejection.

Possible reasons include promoting prohibited products, lacking required approval, making misleading claims, or using a landing page that does not meet the platform’s requirements.

It is recommended to submit ads for review at least 48 hours before launch, especially for restricted categories. Editing previously approved materials may trigger another review.

If an ad is rejected, advertisers should review the reason and correct the violation. If they believe the decision was made in error, they can contact the Reddit Ads Help Center and request a review.

Reddit Advertising with newage.

The newage. team helps businesses plan digital media strategies, set up advertising campaigns, and implement analytics solutions. We build measurement systems using tools such as GA4, Google Tag Manager, server-side tracking, and other solutions for collecting and analyzing advertising data.

If you are considering Reddit Ads as an additional channel in your media mix, contact newage. We’ll discuss your marketing objectives, opportunities to integrate the platform into your advertising strategy, and approaches to measuring results.

FAQ About Reddit Advertising

How Much Does Advertising on Reddit Cost?

Reddit Ads does not have fixed advertising costs. Pricing is determined through an ad auction and depends on the audience, competition, ad format, and campaign objective. Different objectives use CPM, CPC, and CPV pricing models, while the minimum daily budget is approximately $5.

How Do You Launch Ads on Reddit?

To get started, advertisers need to create a Reddit advertising account, add payment details, and access Reddit Ads Manager. From there, they select a campaign objective, configure the audience, budget, and bids, create the ad, and submit it for review before it can begin running.

How Do You Set Up Targeting in Reddit Ads?

Reddit Ads allows advertisers to target users based on topic-based communities (Community Targeting), interests, keywords, geography, demographic characteristics, and devices. Advertisers can also use custom audiences for retargeting and Lookalike Audiences to reach similar users.

How Do You Track Conversions from Reddit Ads?

Reddit offers Reddit Pixel and Conversions API for conversion tracking. Pixel sends events through the user’s browser, while CAPI sends them through server-side infrastructure. The two can be used together with event deduplication to prevent the same conversion from being counted twice.

Is Reddit Ads Suitable for Businesses?

Reddit Ads can serve as an additional advertising channel for businesses whose target audiences are active in the platform’s topic-based communities. Reddit allows advertisers to target broad interest categories as well as audiences based on specific subreddits, keywords, retargeting, and Lookalike Audiences.

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