Expanding our Shopping Ecosystem: Introducing Dynamic Product Ads
From discovery to consideration to purchase, people come to Reddit to seek recommendations, weigh options, and validate their choices with communities they trust. To best support this behavior for both our users and advertisers, we’re excited to announce our newest shopping experience going into public beta, Dynamic Product Ads. This all-new solution is the latest addition to the Reddit Shopping suite, and enables e-commerce advertisers to promote relevant products at the same time people are researching, discussing, and deciding what to buy.
Dynamic Product Ads, the Reddit way
Reddit’s communities are naturally commercial – in fact, each month, an average of 40% of new conversations are related to purchase decisions and product categories (2). What’s more, 75% of shoppers say they can have genuine discussions about what products or brands to try on Reddit (3). Dynamic Product Ads combines these rich shopping signals with machine learning and advertiser product catalogs. The solution then serves the most relevant products to convert high user intent into action by connecting people with the products they’re looking for, at the very moment they’re looking for them.
More specifically, Dynamic Product Ads on Reddit unlock:
Instant campaign creation as the ads auto-populate in real-time with the latest images, pricing and product images from an advertiser’s catalog.
Simple, guess-free targeting with two new targeting options: Retargeting, which automatically serves ads to people based on the products they’ve previously engaged with on the advertiser’s site, and Prospecting, which automatically serves the most relevant products based on what people engage with on Reddit or advertiser sites.
Support across the purchase journey with feed and conversation placement, as well as single image or carousel format ads to reach Reddit users in the discovery, consideration, or decision-making mindset.
“Dynamic Product Ads anchor Reddit’s wider shopping ecosystem and are a contextually relevant, personalized ad experience built for e-commerce advertisers,” said Reddit Executive Vice President, Business Marketing and Growth, Jim Squires. “Reddit shoppers are worth more because they spend more time on the platform in the research and consideration phases of their purchase journeys, which ultimately drives a more confident and higher value purchase decision. With Dynamic Product Ads, brands can tap into the rich, high-intent product conversations that people come to Reddit for.”
Driving Lower Funnel Performance
With Dynamic Product Ads on Reddit, advertisers access a simplified path to purchase that drives conversions. For those who participated in our testing in Q1 2024, Dynamic Product Ads drove 1.9x greater Return on Ad Spend (ROAS) when compared to conversion objective campaigns (3).
Retail brands like outdoor apparel company Cotopaxi, men’s clothing brand Chubbies, and major beauty retailer Ulta Beauty are among the advertisers driving strong results by adding Dynamic Product Ads to their Reddit campaign mix. Dynamic Product Ads drove elevated ROAS for Chubbies, who leveraged both the prospecting and retargeting options during the high holiday season, resulting in a +122% increase in ROAS.
“Reddit hosts some of the most engaged and relevant discussions about our products, and Dynamic Product Ads allow us to show up where those conversations are happening and capture consumers’ attention,” said Ulta Beauty paid social strategy lead, Natalie Salim. “As we enter a new phase of retail marketing and adapt to ads advancements, Reddit’s Dynamic Product Ads are a welcome addition to our industry-leading strategy. The underlying machine learning capabilities remove the guesswork by selecting the most relevant products at ideal moments for consumers, ultimately helping us drive improved ROAS.”
Check Out Now: Our Shopping Vision for Reddit
Reddit is where people come to make shopping decisions, and we’re focused on bringing brands into these interactions in a way that adds value for people and drives growth for businesses. We’re already seeing businesses reach high-intent audiences, connect them with relevant products, and drive increased Customer Lifetime Value on Reddit. Our goal is to deliver a more streamlined purchase experience, with faster access to relevant information that complements the quality product advice people already receive from Reddit communities today.
Over the coming years, we intend to continue investing in both advertising and organic shopping solutions to further build on Reddit’s rich shopping conversations, and the opportunity for ecommerce brands to bring their products into the most relevant communities. This will include tools and features such as new shopping ads formats like collection ads that enhance the shopper experience while driving performance; merchant platform integrations that welcome smaller merchants onto our platform; and other products that will simplify the path to purchase on Reddit.
“Consumer shopping behavior and expectations are evolving rapidly, creating a more fluid purchase lifecycle. As a result, commerce-enabled moments in media are increasingly prevalent, making it critical for us to empower our brands where consumers spend time,” said Omnicom Media Group Chief Intelligence Officer, Joanna O’Connell. “Reddit serves many purposes in people’s lives as they seek to connect, learn, discover, and share. This makes the prospect of e-commerce advertising on Reddit uniquely intriguing to us in support of our broader connected commerce strategy.”
Dynamic Product Ads are in public beta and available to all Reddit advertisers globally – with English, German, Spanish, French, Italian and Portuguese languages supported – via the Reddit Ads Manager. To learn more about the new format and other advertising options on our platform, contact us.
Brandwatch, Global Data, Jan - March 2024
Reddit Custom Survey, US, UK, AUS, CA, DE, n=4,500, Mar 2023
Reddit internal data, Q1 2024.