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Reddit Debunked: Why niche audiences can bring you the ultimate ROAS

Reddit is a platform known for its diverse and engaged user base. With over 430 million monthly active users and 52 million daily active users, Reddit offers a unique opportunity for advertisers to connect with a wide range of audiences. 

However, as a lesser utilised platform in the advertising world, many businesses may be reluctant to take advantage of Reddit with the concerns over reaching their audience and if they will see ROAS.

We understand that venturing into a new paid media platform can be daunting, but at Arke, we’re experts in paid media and know the right platforms to place your buck for advertising success. 

So what are we waiting for?

Let’s get into why Reddit can amplify your advertising…

Can I reach my target audience on Reddit?

It’s a common misconception to think that because Reddit users are anonymous, it lacks a substantial user base. But that couldn’t be further from the truth!

Believe it or not, Reddit boasts over 430 million lively users each month, and among this diverse crowd, you’ll discover a substantial portion of high-earning individuals, pulling in around £60,000 or more annually.

So, if you’re looking to tap into a sizable audience that might not frequent Facebook or Instagram as often, Reddit might just be your golden ticket!

90% of users trust Reddit to learn about new products and brands and if you’re tailoring to a very specialised group of people, your personalisation is going to be on the next level. 80% of consumers are more likely to buy from a company that provides a tailored experience, so if you’re advertising in a channel specifically about their favourite interest, you can expect engagement to be high.

In terms of reach, Reddit’s capabilities are impressive, with the platform claiming to deliver anywhere from 25% to a whopping 70% reach. While Reddit might not boast the same colossal user numbers as giants like Facebook or Instagram, it compensates with unparalleled user engagement. Regular Reddit users, on average, dedicate nearly 34 minutes of their daily routine to the platform.

Reddit’s user demographics skew notably toward the Millenial/Gen Z 18-35 age bracket, and its user base exhibits participation in specialised segments such as Gaming, Fashion and Entertainment, meaning there’s a subreddit for any brand out there.

Can I reach high intent audiences on Reddit?

Reddit offers a familiar set of targeting options that you’d find on the social platforms you’re currently using – think age, gender, location, and interests. 

But here’s why Reddit’s is different, the platform hosts subreddit targeting. You can laser-focus your ads to appear only in specific online communities, and if you fancy a bit of extra precision, you can even fine-tune by demographic details.

Now, picture this: there are a whopping 2.8 million subreddits out there. Some are as generic as ‘football’ and some a little more precise like ‘rare lobsters’- we know, we want to know what this is about too! The trick is to reach your audience when they are in the zone, actively in the discovery mindset. Show makeup-related ads in the ‘Beauty Babes subreddit’, hit the vegan food community with your vegan cheese, cater to sunglasses enthusiasts in ‘stylish shades’, and drop your perfume brand in a subreddit all about ‘favourite fragrances’.

For example, you have a face serum that tackles rosacea. First point of call is head over to Google and Semrush to see which subreddits are most popular for users seeking and discussing ways to tackle this. Found the most high intent groups? Stick your ad on the ‘Rosacea Remedies’ subreddit, and place your product directly in front of the eyes of people regularly discussing ways to solve their problem, your product being the answer they are looking for.

Timing is where the magic happens in the ad game and nailing the moment when your audience is primed to engage with your ads can make all the difference. It’s like delivering pizza when your friends are starving, and it’s everything!

Are Reddit Ads Difficult to Create?

Creating engaging ads that resonate with the Reddit community may seem challenging.

While it’s true that creating ads that align with Reddit’s culture and values is important, it’s not as daunting as it may seem. The key is to understand the community and create content that fits seamlessly into the platform.

Well-written text-based ads can also be effective but visual content like images and videos often perform exceptionally. In fact, Video ads actually have 54% lower CPA over a 28-day period.

We’ve got our top 5 tips to create compelling ads on the platform:

1. Optimise for Mobile


It’s no secret that people spend a significant amount of time on their phones, so when you consider that a whopping 75% of Reddit’s worldwide audience accesses the platform through mobile devices, it becomes crystal clear that optimising your ads for seamless phone and tablet viewing is an absolute must. We recommend video ads 4:5, and static ads in 4:5 or 1:1 ratios.

2. Be transparent

At Arke, transparency is at the heart of our company, and we recommend keeping this theme in your advertising. Redditors don’t not like ads; they simply don’t like deceptive advertising. While it might be tempting to camouflage your ads as organic content, you’ll foster greater engagement and trust by presenting your ads transparently as what they are.

3. Showcase your offering

Your creatives should grab your audience’s attention. Build your offering around your niche and target accordingly. Even if multiple versions are needed to target the different subreddits your advertising on, you need to show them why they need to buy your product and just how great it is!

We recommend video being best for this! Maybe generate some excitement with offers. Reddit claims deals and offers generate 24% more clicks.

4. Be creative with copy

If you want to attract redditors to your brand then it’s time to pick up the reddit lingo! Using the abbreviations redditors use on the platform can generate a 201% higher advertiser median revenue. If you’re not too familiar with the chit chat on reddit, our in-house copywriter can create the perfect recipe to reddit language success!

5. You need a concise call to action

Just like us, redditors are big on transparency so will value your ads more if you’re straight to the point. Consider your call-to-action a top priority and redditors will too. Including a clear call to action can result in 1.3x ad awareness on the platform.

Are Reddit Ads Expensive?

One common misconception is that advertising on Reddit is prohibitively expensive, whilst it’s actually true that Reddit ads can be highly cost-effective when used strategically.

Advertising on Reddit can be a total steal, and you don’t need to break the bank! You can get started for just $5 a day.

But here’s the fun part: Reddit ads are incredibly flexible. You can choose to pay based on impressions, video views, or get into auction-style action with Cost-Per-Click bids. And guess what? The starting bid for those auction-style ads is just $0.20!

Reddit is home to thousands of communities, endless conversation, and authentic human connections. The power of the efficiency of where you’re stocking your cash in the platform is the access to highly intent users.

Reddit hosts less competition, potentially serving up lower costs per impression and click than your regular advertising platforms. Plus, with a smaller, more finely-tuned audience, you’ve got every reason to expect higher click-through and conversion rates.

Advertising on Reddit can be a powerful way to connect with a highly engaged and diverse audience. By dispelling these common myths and misconceptions, businesses can make informed decisions about incorporating Reddit into their advertising strategy. 

When used effectively, Reddit ads can be cost-efficient, well-received, and suitable for businesses of all sizes and industries. Embracing the unique opportunities Reddit offers can lead to successful advertising campaigns and increased brand exposure.

If you’re ready to create advertising with an impact on reddit, then get in touch with an Arkenaut today.

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