Reddit introduces a new ad format that looks similar to posts made by users

Reddit is introducing a new ad format that looks similar to posts made by users on the platform, the company announced on Thursday. The launch comes as Reddit is readying its initial public offering (IPO). The new ad format, called free-form ads, is designed to feel similar to the content that users share with each other in order to help advertisers get maximum engagement. Although the new format may be enticing to advertisers, ads that look like regular posts may not be a welcome addition for users.

Advertisers can use the format to combine multiple media types, including image, video and text with the help of ready-made templates. Reddit says the ad format is inspired by one of the platform’s most popular post types, the megathread, which is a sort of one-stop-shop for discussions about popular topics. Similar to megathreads, free-form ads are meant to help readers get the information they need quickly. The company says the new ad format would be a good way to do things like launch a product or introduce a brand to a new audience.

Similar to other ads on Reddit, users will be able to differentiate between free-form ads and regular posts through a “Promoted” label displayed next to the company’s name on a post.

In early testing of the new format, Reddit found that free-form ads outperform all other ad types in average click through rate (CTR) by 28%, along with increased community engagement when comments are enabled.

“Free-form ads give advertisers the flexibility to build an ad of any length, using multiple media types, with a look and feel that’s native to the platform,” said Jim Squires, Reddit’s EVP of Business Marketing and Growth, in a blog post. This format encourages a mix of content, context and creativity from brands, while driving strong performance and brand awareness.”

The new ad format is available today to all advertisers on Reddit globally via the Reddit Ads Manager.

Today’s announcement comes a few days after Reddit introduced a suite of tools, called Reddit Pro, to help businesses grow an organic presence on the platform. Reddit is likely seeking to add more brands to its platform and possibly convert them into paying advertisers. The launch marked the first time that Reddit offered free tools to help businesses with their social strategy.

Reddit launches free tools to help businesses grow their presence on the site ahead of IPO