With over 70 million daily active users spread across thousands of communities (called subreddits), Reddit gives advertisers something most platforms can’t: access to highly targeted audiences.
Here, your ideal buyers are already discussing topics around what you offer, and this gives you a better chance at driving conversions. To get the most out of Reddit, though, you’ll need to set up your marketing campaign the right way.
This ultimate guide breaks down how to advertise on Reddit. We’ll look at the different types of Reddit ads and also share best practices so you hit your campaign goals consistently.
Why Advertise on Reddit?
Reddit isn’t just popular among social media enthusiasts but is becoming a go-to for businesses, too. The platform’s ad revenue is expected to hit $1.8 billion in 2025, up about 50% year-over-year, showing more advertisers are plugging it into their digital marketing strategy.
In fact, roughly 9% of B2B and B2C businesses are planning to run their first Reddit campaigns this year, and here’s why you should jump on the wagon:
- Niche audiences – Reddit is broken down into 100k active communities where you can zero in on exactly the customer segment you want.
- High user engagement – Reddit users (called Redditors) comment, share, debate, and basically live in the threads.
- Trust and authenticity – A Sprout Social survey reveals that users are 46% more likely to trust brands that advertise on Reddit, but you must be transparent to build trust here.
- Low cost – because Reddit Ads are still newer than most advertising platforms, cost per click and cost per mille can be lower, and there are fewer direct bidding wars in many subreddits.
- Less competition – not many businesses run ads on Reddit, and this gives you more opportunities to stand out.
How Does Reddit Advertising Work?
Before you learn how to advertise on Reddit, it helps to understand how the platform’s ad system works. Advertisers bid for ad space in an auction system, paying either per click or per impression. Then, these ads show up in feeds and subreddits and are marked as “promoted. “
Here’s what that looks like in action:
- You create an ad targeting specific subreddits, keywords, or user interests.
- The ad appears in subreddit feeds, the homepage, and even threads.
- Redditors upvote, leave comments, and share the ad (it can get downvoted, too).
- High engagement rates signal ad relevance and trigger the algorithm to give you more visibility.
Types of Reddit Ads
One big perk of advertising on Reddit is flexibility. You’ve got multiple ad formats to work with, which means you don’t have to stick to one cookie-cutter ad format. And that’s a win, because what works in one campaign might flop in another.
Here’s a quick walkthrough to help you choose the right ad formats on Reddit.
Promoted Posts
Research has shown that 27% of Reddit users who view an ad are more likely to buy what’s advertised, and promoted posts help you get there. Promoted posts are basically regular Reddit posts wearing a tiny “Promoted” badge. These are displayed in subreddit feeds or on a user’s homepage, where they instantly grab attention.
Video Ads
Video ads work great for product demos, reviews, and brand storytelling. They can auto-play in feeds or run as promoted posts and can be up to 15 minutes long. Keep your video ad short, though because Redditors don’t exactly hang around for a five-minute commercial.
Carousel Ads
Carousel ads are mini slideshows people can swipe through. You can show off different products, angles, or features, and each card can send folks to a different landing page or prelander. This ad format comes in really handy when one picture just doesn’t cut it. It’s a smart way to test what actually grabs attention without running multiple campaigns.
Display Ads
Old-school banners still exist on Reddit.
They show up around the sidebar, top, or bottom of a page. They’re not as native as promoted posts, but they give you solid reach without being tied to specific conversations. These work best for marketing campaigns where you just want to create brand awareness (like when you’re introducing a new product or an update).
Reddit Takeover
This is an advertiser’s power move for maximum visibility. You basically rent out the Reddit homepage or an entire category for 24 hours. Everyone sees you as soon as they open the app. Reddit Takeover ads cost more than other ad formats, but if you want to dominate, the visibility is worth every dollar you spend. Brands usually save this for product launches or events they want to create buzz about.
Ask Me Anything (AMA)
Instead of creating a regular ad, you host a Q&A session. Users ask questions, and you answer in real time. If you’ve got a cool product to launch, subject matter expertise, or even a personality people enjoy, this format builds real trust. Done right, people will keep talking about your AMA long after it’s over.
How to Advertise on Reddit in 8 Steps
Reddit thrives on intelligent conversations. The better your ad fits into the subreddit you’re targeting, the better it will perform. Here’s a step-by-step guide on how to advertise on Reddit, from setting up your Ads Manager Reddit account to optimizing your campaigns.
Step 1: Create a Reddit Ads Manager Account
Before setting up an ad, you need access to the Reddit Ads Manager. That’s the platform where all your campaigns, budgets, and data live. Setting it up is free and only takes a few minutes.
Follow these steps:
- Go to Business for Reddit.
- Click “Get Started.”
- Provide your email address or continue with Google.
- Enter your business info (like the name, URL, currency, country, and industry).
You’ll need to set up a payment method before you can start running ads. However, Reddit only accepts credit and debit cards, so you have limited options.
Step 2: Select Your Campaign Objective
Your campaign objective shapes how your ads get delivered and who sees them. When you set up a campaign, Reddit gives you options like:
- brand awareness;
- conversions;
- traffic;
- app installs;
- catalog sales;
- video views.
Select the one that matches your goal. Running a Black Friday promo? Go for conversions. Launching a new product? Brand awareness is the smartest pick.
Step 3: Set Your Campaign Budget and Schedule
When it comes to budgets, Reddit lets you test the waters with small daily spends. The platform gives you these options when setting up your campaign:
- Daily budget – the amount you spend on the campaign each day
- Lifetime budget – the total cap for the entire campaign
- Start and end dates – when your ads go live and when they stop
Set a budget and schedule that allows your advertisement to run long enough to generate performance data for campaign optimization.
Step 4: Create Ad Groups
Ad groups are where you organize your ads so things don’t get messy. Each group can have its own targeting, budget, and creative. That way, you can test different ideas side by side and analyze performance without mixing results.
Here’s an example of how to set up ad groups smartly:
- Group by audience – for example, have gamers in one group and tech buyers in another
- Group by creative – you can test a funny meme ad in one group, and a product-focused ad in another
- Group by goals – focus one ad group on traffic, and the other on conversions
Pro tip: Don’t overload your ad groups. When you have too many variables in one group, it becomes hard to tell what’s working.
Step 5: Define Audience Targeting
Targeting is the foundation of a successful Reddit campaign. It’s what determines whether or not your target audience will see your ad. The goal is to get in front of the right audience, and Reddit already makes this easy for advertisers through subreddits.
You know how other social media platforms display ads in general feeds? Well, because Reddit has specific communities, you can focus on a small group that is genuinely interested in your product.
You can target users by:
- keywords;
- subreddit;
- interest group;
- gender;
- device type;
- community (or subreddit);
- location (city, state, or country).
You can also combine different targeting options (for example, location and community) and use custom audiences for a sharper campaign.
Step 6: Build Your Ad Creatives
Your ad creative is the heart and soul of your campaign. It determines whether or not you’ll grab attention, because let’s be honest, even if you have crisp targeting and a huge budget, people won’t click if the visuals aren’t captivating. The sweet spot is creating an ad that feels like it belongs in the feed but still grabs attention in a way organic posts don’t.
Here are a few ways to achieve this:
- Write like a human – skip the corporate jargon, because Reddit users prefer plain, everyday language.
- Use visuals that fit the crowd – a meme-style image might work in one Reddit community, while a clean product shot works better in another.
- Use high-resolution visuals – clear, sharp images and videos make your ads more appealing and professional.
- Use a compelling headline – craft a short, punchy headline that quickly grabs attention (aim for 5–12 words).
- Use the right CTA – you’ve got 20+ options (including download, install, shop now, get a quote, and learn more), so choose the one that aligns with your campaign goal.
If your ad feels like it could earn an upvote as a regular post or comment, that’s a win.
Step 7: Set Bidding and Optimization
Reddit runs on an auction system, so you’re basically competing with other advertisers to get in front of your target market. The more relevant your ad is, the less you’ll end up paying.
Here are three ways to pay for ads on Reddit:
- Cost-per-click (CPC) – you pay when someone clicks your ad ($0.50–$2).
- Cost-per-impression (CPM) – you pay per 1,000 times your ad is shown ($0.20–$15).
- Cost-per-view (CPV) – you pay when someone watches your video ad past a set point (varies, but often cheaper for broad targeting).
If you’re just testing an ad format or Reddit in general, CPC keeps things simple.
Step 8: Launch Your Ad
At this point, your ad is ready to launch. But Reddit doesn’t give you the “Publish” button right away. Instead, it prompts you to review the ad details. This step is really important because it helps you spot errors before the ad goes live.
If everything looks good, go ahead and publish it. Ads get approved pretty quickly, and you’ll start seeing impressions within hours.
Best Practices for Reddit Advertising
Knowing how to create a Reddit ad is only half the battle. To see results like high click-through rates and more returns on your ad spend, here are the tips successful marketers follow.
Understand Each Subreddit’s Culture
Every subreddit has its own vibe. What feels natural in r/funny might be awkward in r/personalfinance. Spend time observing first–see what people post, how they talk, and what they upvote. Once you’ve got the tone down, craft your ad so it feels like part of the feed. That way, you’ll see more users clicking through to your landing page.
Be Transparent
Keep your tone casual, and be upfront that it’s a promoted post. Also, write like a helpful, approachable human. When you’re real, people engage. They’ll ask questions, crack jokes, or share their own experiences. That kind of interaction makes your advertisement feel like a conversation.
Align Campaigns With Communities
Not every subreddit is a good fit. If you’re selling fitness gear, r/fitness or r/homegym makes sense. But dropping that same ad in r/movies is an instant flop. Mapping your campaigns to the right subreddits saves money and builds trust. If you go where your target audience is, you’ll spend less effort convincing them to buy what you’re selling.
Test Multiple Ad Formats and Creatives
Don’t assume what worked on Instagram will automatically work here. Sometimes a slick video works. Other times, simple text or image ads outperform everything. Reddit gives you different ad types, so keep experimenting until you find what your audience prefers.
Enable Comments
Keep an eye on the comment section. Redditors will ask questions, call you out, or share feedback right under your ad. Respond with tact–it makes your brand feel approachable. Even negative feedback can be useful. If multiple people point out the same problem, that’s insight you wouldn’t get from standard ad platforms.
Don’t Be too Salesy
Pushy CTAs and “limited-time only” hype are common mistakes that don’t land well here. Instead, frame your ad like you’re sharing something useful (whether it’s a tip, a deal, or just something entertaining).
Read your ad copy before hitting the launch button. If it sounds like a newspaper commercial, rewrite. Top-performing Reddit ads are those that sound like a friendly recommendation.
Track and Optimize Ads
With ad tracking software, you can see the clicks, conversions, and audience behavior, then optimize your campaign for better results. RedTrack makes it easy by pulling all your ad performance data into one dashboard, letting you measure campaign effectiveness.
It also helps you spot trends early (for example, catching drops in conversion rates before they eat into your ROI). That way, you know exactly what deserves more budget, what to cut, and where to improve.
Optimize Your Reddit Ad Campaign With RedTrack
Knowing how to advertise on Reddit is important because it helps you reach a user base that already cares about your products. However, even if your ads land in the right subreddit, how do you know which ones are driving sales? What’s generating money and what is nothing but a build awareness campaign?
That’s where most marketers get stuck. Reddit’s native dashboard shows the basics, but it doesn’t always tell the full story. Did that conversion come from your meme-style ad in r/funny, or from the clean product shot you ran in r/Entrepreneur? Without proper ad tracking, you’re guessing, and that gets expensive fast.
Successful performance marketers avoid this headache by using advertising management software like RedTrack. Instead of jumping between Reddit, Google, Meta, and TikTok dashboards, RedTrack pulls all your data into one place. Every click, conversion, and user journey gets tracked accurately (and yes, without traditional cookies!) thanks to its server-side tracking and API integrations.
The big win is that you finally get clarity.
You can see which subreddit targeting actually pays off, which creative is worth scaling, and which campaigns are eating your budget without delivering results.
For agencies, it’s a lifesaver because you can hand clients clean, real-time reports instead of messy spreadsheets, and for e-commerce brands, it’s the difference between doubling down on what works and burning money on ads that don’t.
If you’re serious about making Reddit part of your online advertising strategy and learning how advertising on Reddit works, especially for big sales like Black Friday, RedTrack is the tool that keeps everything clear, accurate, and actionable.
The set up is simple – you don’t even need a developer!
Take RedTrack for a spin with our 14-day free trial and see how much smoother your campaigns run.
