David Bridges
Key Insights
- Performance: Reddit ads provide superior return on ad spend (ROAS) compared to other social platforms.
- Engagement: Tech companies are effectively reaching engaged buyers using Reddit for in-depth product analysis.
- Ad Formats: All ad formats on Reddit deliver above-average ROAS, with text-based free-form ads being the top performers.
- Targeting: Automated targeting features enhance ad performance by optimizing reach beyond manual selections.
Reddit has published a new report that looks at its value for technology marketers, and how Reddit’s evolving ad offerings can help to drive sales activity for tech brands.
The report, conducted in partnership with TransUnion, incorporates a meta-analysis of past Media Mix Modeling studies, in order to better understand the benefits of Reddit ads for tech marketers.
Which is a pretty complex way of saying “we looked at campaign data and examined the key elements,” but essentially, the report looks at how tech companies have been able to use the platform to get their ads in front of relevant buyers.
And the main finding that Reddit’s keen to note?
“TransUnion’s meta-analysis showed that Reddit consistently outperforms other social platforms on return on ad spend (ROAS). Even with a smaller share of market spend, Reddit delivers disproportionately more marketing-driven sales. In fact, it was more efficient than 4 out of 5 other paid social platforms.”
I mean, it’s a Reddit–commissioned study, published by Reddit, so it’s no surprise that the main finding is that “Reddit is the best.”
But based on the data, the research shows that tech companies are reaching engaged buyers in the app, which also underlines how Reddit is increasingly being used to facilitate more in-depth product analysis, by providing access to engaged, knowledgeable communities, that offer real insight into solutions.
The report also suggests that Reddit promotions enhance the results of broader marketing campaigns involving other channels, while the data also suggests that all of Reddit’s ad formats deliver above-average ROAS compared to the media plan average.
“In particular, text based free-form ads were the top performer.”
Again, more and more people are referring to Reddit for more direct, valuable insight into products, especially in technical areas, and as such, it’s no surprise to see Reddit ads performing well in the tech sector.
In terms of how to maximize Reddit ads for this audience, the report points to Reddit’s expanding range of ad options, while it also includes a note about the platform’s improving AI targeting options:
“Use automated targeting to reach users beyond your manual targeting selections when it’s likely to improve performance. This 24/7 optimization engine can improve performance across each stage of the marketing funnel, and helps advertisers spend less time on manual targeting, and more time on strategic decisions.”
Some handy tips for tech marketers, which underlines the potential of Reddit as a means to reach your target buyers.
You can check out Reddit’s full tech buyers report here.
Troy Sanders
