Reddit has announced the integration of CPC (cost per click) ads as its first performance-driven ad offering, as it aims to optimize the site's business performance. Reddit said the use of CPC ads will “round-out” its series of bid type offerings that are already in place. Reddit also stated that they will be using 2019 to focus specifically on expanding both advertising tools and comprehensive marketplace capabilities.
Reddit plans to use CPC ads to enhance its performance advertising, which will be led by recently hired VP of ads product & engineering, Shariq Rizvi. Including the launch of CPC, Reddit will now offer four campaign objectives to advertisers: reach, video view, traffic and conversions. The objectives will all be linked to bid types such as CPM, CPV and CPC.
“While cost-per-click advertising isn’t innovative, in itself, the launch marks a big moment for the Reddit Ads business,” said Zubair Jandali, Reddit’s VP of brand partnerships. “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.”
Before the official launch of CPC ads, Reddit performed beta testing with more than 50 advertisers across multiple verticals, including Hired and Kabam. According to 'the front page of the internet', most of the participating advertisers saw an improved ROI of up to 50 per cent. Advertisers can already purchase CPC inventory on Reddit’s Ads dashboard. CPC ads will then be advertised on all platforms and devices and will be featured as links or Promoted Posts.