Reddit is stepping up its advertising game with the launch of two new AI tools aimed at helping brands better connect with its vast user base. One of the tools, Reddit Insights, offers real-time analytics to help advertisers understand trending topics and shape their campaigns accordingly. The second, Conversation Summary Add-ons, lets marketers display positive comments from users directly under their ads, tapping into the community’s trust to enhance authenticity.
These tools were introduced at the Cannes Lions advertising festival, highlighting Reddit’s ambition to compete with platforms like Snap and Pinterest in the advanced ad tech space. At a time when marketers are seeking faster, data-backed campaign solutions, Reddit’s new features are designed to offer deeper engagement by reflecting real-time community conversations.
The strategy seems to be paying off. Following the announcement, Reddit’s stock rose nearly 4%, a sign that investors are optimistic about the platform’s growth. The company has also seen strong user engagement, recently reporting a 61 percent increase in year-on-year revenue and more than 108 million daily active users.
Behind the scenes, Reddit is making long-term investments in AI talent and infrastructure. Its 2023 acquisition of Memorable AI brought in expertise on video and image engagement, which is now being integrated into these new ad tools. This blend of internal development and strategic partnerships is positioning Reddit as a serious player in AI-powered advertising.
Ultimately, Reddit is playing to its strength: real conversations. By combining community-driven content with smart targeting tools, the platform is offering a more organic and effective way for brands to reach users. In doing so, Reddit is not only modernising its advertising model but also reinforcing its identity as a place where real voices matter.
