Reddit is preparing to put ads in more places as it faces mounting pressure from declining traffic referred by Google. The company plans to test ads within its search results, aiming to monetize the "high purchase" intent of users who rely on the platform for buying advice.
In a blog post announcing the "initial test" of the new ad format, Reddit said it would surface ads based on "contextual relevance" and other factors. A search for "espresso station" could, for example, return ads for mugs, beans or espresso machines. Reddit did not say how often ads may appear, though screenshots shared by the company showed ads near the top of search results. Only a limited group of advertisers will have access during the first phase, but the company suggested the ads would eventually expand. "During this test, we will evaluate and understand how users respond to these ads so we can refine the experience for users and advertisers over time," Reddit said.
The ad test comes amid a broader shakeup. Reddit said last week that Google's AI mode has caused significant declines in search traffic to the platform. CEO Steve Huffman said that moving to a logged-in-only model would help the company improve its ad targeting. Most of the platform's content will soon be blocked from users who are not logged in.
The changes underscore how Reddit has increasingly had to alter longstanding features as AI upends aspects of its business. The company has already locked down its developer platform and Old Reddit in an effort to combat scraping. "At this point, we're the only platform that doesn't do this," Huffman said during last week's earnings call. "Reddit has just evolved so much that I think this just meets the needs of the time."
Source: Engadget · Summarized by HeadlinesBriefing