Reddit has started testing in-app search ads, aiming to assist advertisers in reaching users who demonstrate a high purchase intent. This development comes as the company faces increased pressure due to declining traffic from Google, which has been impacted by changes in how people discover content through Google's AI search. According to Reddit, the ads will be surfaced based on contextual relevance, with only a limited group of advertisers having initial access to this new format.
Additionally, Reddit plans to restrict logged-out users from accessing most of its content, gradually transitioning to a logged-in experience. The introduction of search ads is seen as a strategy to generate more revenue from existing users, addressing concerns about the platform's growth as its global daily active users remain flat and U. S.
daily active users have decreased. As Reddit navigates these challenges, the success of its search ads will be closely watched, particularly given the recent drop in the company's stock following its third-quarter results.
Evidence lens
2 cited sources are linked to this briefing.