Paid Social Advertising on Reddit: How It Compares to Meta and Google

12/5/2024

In today’s fast-paced digital marketing landscape, social media advertising is a crucial pillar of any comprehensive strategy. While Meta (Facebook/Instagram) and Google have long been dominant players in the world of paid digital, Reddit offers a unique opportunity for advertisers looking to diversify their campaigns and tap into highly engaged lifestyle interests and communities. For anyone not familiar, Reddit is a social news website and forum where users can connect over shared interests, participate in discussions, and learn about what's relevant in the world, and is the 7th most-visited website in the United States.



In this article, we’ll explore why Reddit is a must-test platform for brands looking to engage new audiences and compare key metrics like CPM, CPC, and reach to similar campaigns on Meta and Google. We'll also dive into the unique targeting options Reddit provides.

Why Test Paid Social Ads on Reddit?

Reddit, often referred to as "the front page of the internet," is a platform that thrives on community-driven content. With over 430 million active users and thousands of niche subreddits, Reddit allows advertisers to reach hyper-targeted audiences that are highly engaged and passionate about specific topics. According to Statista, 63% of Reddit users are male, while the remaining 35% are female. 44% of Redditors are 18 to 29, while 31% are aged 31 to 49. The average age of Redditors is 23, which makes it a great place to find fans with growing spending power. 85% of Reddit users use the site on mobile devices.

Reddit's CPM, CPC, and Reach: A Comparison to Meta

When comparing Reddit’s performance metrics to other platforms, it's important to understand the unique opportunities that the platform offers to advertisers looking to find new fans.

CPM (Cost Per Thousand Impressions)

So far in Q4 of 2024, we’ve seen a $2.29 eCPM on Reddit compared to $11.73 on Meta, in large part because advertiser demand is still less developed than on other platforms. As we’ve seen on TikTok and Snapchat over the last year, that can change quickly as word of mouth spreads about the platform. Lower CPMs are a particularly compelling opportunity during “Q5” when advertising rates soar around the holiday shopping season.

CPC (Cost Per Click)

Lower CPMs don't mean lower engagement or click-through, and we're seeing click-through rates on Reddit that are in line with other platforms at around .5%. As a result, we've seen a cost-per-click rate of $.59 compared to $1.33 on Meta and $4-$5 on Google search.



Reach



Because of lower CPM advertising, Reddit also provides a broader reach, and we’ve seen as many as four times the number of impressions delivered on Reddit compared to other platforms for the same dollar amount.

Unique Targeting Abilities on Reddit

One of the standout features of advertising on Reddit is the platform’s ability to target audiences based on very specific lifestyle and affinity interests. Below are the four main targeting parameters.



Subreddit Targeting



Subreddits are the lifeblood of Reddit, and they represent communities centered around specific topics, hobbies, or interests. Whether it’s technology, sports, parenting, or niche fandoms, subreddits give advertisers access to high-affinity audiences. Amongst the most popular subreddit are r/gaming with over 35 million subscribers, and r/music, with 32 million subscribers. Overall, more than 500 subreddits have over 1 million subscribers each



Keyword Targeting



Reddit allows advertisers to target specific keywords used in post titles, comments, and discussions. This means you can align your ad with topics that are currently trending or relevant to your target audience, providing a more organic, contextual ad experience. In December of 2023, Reddit had an average of more than 35 million search queries a day on the platform.



Interest Targeting



Reddit also offers broad interest categories like gaming, fitness, or finance. While less granular than subreddit targeting, interest targeting can still deliver strong results by focusing on users’ stated interests across a variety of topics.

Conclusion: Why Reddit Should Be Part of Your Paid Social Strategy

Testing paid social ads on Reddit provides an opportunity to experiment with new targeting options and gather insights that can optimize your overall advertising strategy. Compared to Meta and Snapchat, Reddit offers more niche targeting options, cost-effective CPM and CPC rates, and an engaged audience base that often leads to higher-quality interactions. By using Reddit’s subreddit, keyword, and behavioral targeting, advertisers can drive meaningful engagement and test new strategies to improve campaign performance across multiple platforms.



As you continue to refine your paid social advertising efforts, make sure to include Reddit in your testing mix. With its unique features, lower costs, and the ability to target highly specific groups, it could become a powerful addition to your advertising toolkit.

This comparison of key metrics and targeting options should provide a strong foundation for testing and refining paid social campaigns on Reddit.