Digital Transformation

Reddit to offer CPC ads as it looks to position itself as viable duopoly alternative

By Andrew Blustein | Reporter

January 30, 2019 | 3 min read

As Reddit looks to build out its performance advertising business, the social site has begun offering cost-per-click bid types.

Though CPC ads are table stakes, Reddit's vice-president of brand partnerships, Zubair Jandali, said this is a major step forward as the site aims to round out its ad offerings.

Reddit ramps up performance ads business with CPC offering

Reddit ramps up performance ads business with CPC offering

“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 Jandali.

According to the IAB, 61% of half-year 2018 internet advertising revenue was priced on a performance basis. Zubair told The Drum that offering CPC ads will open the site up to a "new class of advertisers".

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"Reddit serves as a release valve for marketers looking for an alternative to Facebook, Google and Amazon, and we're excited about that simply because if they've found efficiency on those platforms, they'll likely find efficiency with ours, but with new users and a different environment," said Zubair.

According to a company spokesperson, bidding on Reddit's CPC ads will start at 25 cents.

Reddit had been beta testing the bid type for native in-feed ads with 50 advertisers across different verticals, including Wayfair, Hired and Kabam. According to the company, most advertisers saw an improved return on advertising spend of up to 50%.

The CPC rollout aims to help the so-called "front page of the internet" deliver on its four campaign objectives: reach, video view, traffic and conversions, which are associated with its suite of bid types, including CPM and CPV.

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