Reddit Introduces Cost-Per-Click Ads: Just The Facts

February 11, 2019 Victoria Pallien

Advancing their ad options beyond purchasing on cost-per-view (CPV) and cost-per-impression (CPM) models, Reddit, the social news site, launched cost-per-click (CPC) advertising last month.

What Does Reddit Cost-Per-Click Advertising Entail?

Reddit cost-per-click advertising marketing

On January 30^th, Reddit announced that direct response advertisers are able to purchase any inventory on the platform – for desktop, mobile web and app – on a CPC basis, the site’s first performance-based ad unit.

Reddit CPC ads can be purchased through Reddit’s dashboard alongside their offering of CPM and CPV ads. Reddit’s CPC ads can serve as links or Promoted Posts.

CPC ads may result in better return-on-investment (ROI) for marketers, as proven by Reddit’s beta testing with Wayfair, Hired and Kabam, which resulted in a 50% better ROI.

Why Is Reddit Offering CPC Advertising?

Reddit Offering CPC Advertising

This year, Reddit is focused on broadening advertising tools and building a marketplace that offers more performance-based advertising. So when Reddit found that performance advertisers on their site were interested in setting direct response-focused KPIs, including conversion and traffic goals, but they didn’t have access to the right tools, Reddit began offering CPC. The site is also hoping to attract new marketers.

“While cost-per-click advertising isn’t innovative, in itself, the launch marks a big moment for the Reddit Ads business,” said Reddit’s VP of Brand Partnerships Zubair Jandali. “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.” In other words, Reddit was behind the times and acknowledged their late adoption of CPC ad offerings.

What Does Reddit CPC Advertising Mean For Marketers?

With the launch of CPC advertising, Reddit now puts themselves in the running to inherit a larger portion of marketers’ advertising budgets. Marketers can now diversify their performance-based initiatives and include Reddit ads in their strategy to reach young, news-focused consumers between the ages of 18 and 34.

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About the Author

Victoria Pallien is a Marketing Communications Writer at Digital Media Solutions (DMS), the fastest-growing independent digital performance marketing company. DMS helps its clients accelerate growth by deploying diversified and data-driven customer acquisition solutions that deliver scalable, sustainable and measurable marketing results. DMS performance marketing solutions connect the right consumers with the right offers at the right time to achieve the marketing objectives of our clients. DMS is continually innovating to provide new and emerging media and technology solutions that minimize waste and maximize results across the most competitive industries. Since its inception, DMS has demonstrated incredible year-over-year growth which has earned recognition on the Inc. 5000 list in 2014, 2015, 2016, 2017 and 2018.
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