A new format for ads on Reddit is coming, with the company behind the idea to make them look like regular posts, complete with upvotes, downvotes, and comments where users may react. This new format is called "Free-Form Ads," and the company meant for this to look like the usual human-made posts on Reddit to boost more of its engagements on the platform.
Since Reddit went public, the company shaked things up on the platform which led to massive protests from users and moderators, as part of its new direction.
Reddit Ads Look Like Regular Posts on the Platform
In the latest post by Reddit, the company is inviting its advertising partners and clients to "post like a Redditor," essentially transforming ads into a post format, the ones that the public sees regularly on the platform. This is called the Free-Form ads, taking on the form of one of the platform's most popular post types called "megathread" which centers more on discussions.
The open-ended nature of free-form ads means advertisers have the freedom to explore different types of creative to build a bespoke brand experience, facilitate in-depth conversation with Reddit audiences, and share a comprehensive voice on platform.
Free-Form ads are already seen on the platform for some advertisers, and Reddit claimed that it outperformed regular ads by 28 percent in average click-through rate (CTR).
Free-Form Ads: Complete with Upvotes, Comments
These Free-Form Ads were said to be like a megathread, and this regular type of post-type adds upvotes and comments to the ads. This boosts more of the engagements that the ads would get, and as per Reddit's example, the Philadelphia cream cheese company asked about how users use this type of dairy product, as a free-form ad, with users interacting on it like it was a regular post.
Reddit and the New Experiences on the App
Last year, as massive reports came flooding in about Reddit's potential IPO, there were significant changes seen in the company including the arrival of personalized ads. However, many are already raising concerns regarding these as the ads are notorious for showing results that users search for, having massive access to their private data, speculated for Reddit's push to grow more of its value.
The controversy on Reddit also sparked as many doubted its accuracy and legitimacy as a source, especially when the platform drove away various moderators amidst their API changes.
Reddit also signed a licensing deal that uses its user data and posts on the platform with Google, with as much as $60 million to receive for AI model training.
All of those events unfolded earlier this year when Reddit finally started its steps to go public and filed for its IPO, inviting long-time users and investors to buy their stocks which are reserved for them. In this move, Reddit is now leveraging advertisements as part of the feed, with advertisers given a chance to transform them into a post format which could boost more of its click-through rates and engagement.
