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New Year, same problem on Reddit: it’s still an outlier in the eyes of advertisers.
To be clear, the social news site has made solid strides in winning over advertisers since Digiday last checked in a year ago. A clearer understanding of what is and isn’t among marketers is proof of that.
Still, it’s arguable that Reddit has to do more to turn that sentiment into ad dollars. For platforms trying to find permanent space in their media plans, it’s no big deal.
“Reddit straddles an awkward space between social media, blogs, forums and sites of community interest,” said Elliott Millard, Head of Planning at Wavemaker UK. Or the idiosyncratic focus of things like Pinterest. Width is an issue because the client can’t put it in a neat box. ”
Take the UK for example. Reddit has certainly evolved since its UK expansion in 2020, and marketers seem happy with the move, but there’s still a lot of work to be done.
pitch to marketers
According to Steve Riad, Reddit’s vice president of global mid-market and small business sales, the platform has some strong relationships, mostly formalized with all major holding companies around the world. We have a partnership.
“For 2022, we have announced a global enterprise partnership with IPG, and a global commerce advertising advisory partnership with WPP, led specifically from London,” he explained. “Additionally, our in-house Deal Lab team is responsible for building annual partnership agreements with agencies. You can also do it UK, and Hule.
These partnerships are impressive, but what exactly do they mean?
In certain circumstances, Reddit offers some of Dentsu’s clients referral advertising credits for new brands looking to ease their entry into advertising on the platform.
Similarly, Starcom Managing Partner (Performance) Paul Kasamias pointed out that Reddit is serving the agency’s highest spending clients in the platform’s first rejection of the new ad format.
“They are definitely active in offering alpha and beta versions to their customers. Customers like to be at the forefront of innovation, so this is a good sell,” he added.
Reddit also backs Starcom through a creative services division called Karma Lab.
“Reddit will hold workshops to provide insights and trends, as well as access to measurement research on how best to use creative and ad formats on the platform, and how they will impact Reddit and its users. Make sure it’s particularly good for your base.” added Casamias. “It’s definitely incentivizing clients in the right way, not just discounting their advertising dollars, but actually giving clients a deeper, more meaningful experience of using the platform. This is smart.” ”
What do marketers want from Reddit?
According to Reddit’s Riad, when Reddit launched in the UK, the consensus among advertisers at the time was that it was a testing and learning platform. Since then, Reddit has changed the narrative, becoming an important part of the marketer’s media plans, he continued.
Indeed, these profits tend to accrue among a specific subset of advertisers: those keen on Reddit’s strong but niche areas such as consumer, gaming, and technology. For other advertisers, there are still some issues that need to be addressed on Reddit.
Catherine Chappell, head of biddable media at Mediahub, believes some of the platform’s creative capabilities are slower than others and the market needs to catch up. As an example, Reddit is one of the last to publish a video of her. “It only came about 18 months ago and it used to be static,” she said.
Similarly, Nick Weaver, a paid social partner at Dentsu, stressed that Reddit should focus on innovation if it wants to solidify its dollar market share.
“The downside of Reddit is the visual feel of the platform,” he said. “For example, there are certain areas where Reddit fails to appeal, such as fashion, as there are far more visual platforms such as Instagram, Pinterest, and Snapchat. will do well.”
Additionally, Chappell said Mediahub hasn’t seen much from Reddit as far as commercial opportunities are concerned. That said, she hopes it will kick-start this year and continue a healthy relationship with the platform.
Overall picture
Reddit’s attempt to grow its advertising business comes at a time when marketers are understandably scrutinizing which platforms to use and how much to spend.
From Facebook to Snapchat, Google to Twitter, the major media platforms that dominate online advertising are grappling with a cacophony of structural and economic forces that threaten their dominance. In other words, advertisers are looking at where to put their money in and out of these platforms. Reddit advertisers haven’t forgotten the idea.
While other platforms have their own issues to deal with, Chappell noted that Reddit’s service, which marketers seem to admire, continues to fall short.
Reddit, she explained, has been very supportive when it comes to actually providing insight and responses to detailed and actionable briefs compared to other media owners. “It helps us position ourselves both as a planner and as a brand because there is homework behind why.”
Given the platform’s willingness to have two-way interactions to support its advertiser clients, this is probably something not to be missed and could be the USP that sets Reddit apart from the pack.
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