Why Marketers Lag in Recognizing Reddit’s Search Credentials

For queries like “How do I keep my glasses from falling off my nose?” or “What’s the best laptop for graphic designers?” many are not simply turning to Google, but to Reddit, looking to the forum-based platform for nuanced answers. “Reddit is currently the most popular search engine,” wrote blogger DKB in a post in February, which argued that Reddit was the superior search platform, due to Google’s overabundance of ads, among other reasons. The post gained traction in certain corners of the internet, including tech business publisher Fast Company. But even if people are using Reddit in this way, there’s a lag for marketers. If Reddit wants to tap into those search budgets, the platform needs to deliver on the objectives, features and ad formats common on other search platforms. "The first dollar goes to Google, the second dollar goes to Amazon and the third dollar goes to Google again before it goes to a Reddit or a Pinterest," said one media agency executive, requesting anonymity. As Reddit prepares for its initial public offering—expected as soon as this month—it must prove the strength of its advertising business to the market. The company reported $100 million of ad revenue in the second quarter of 2021. Reddit’s ad revenue is expected to grow 39% in 2022 to $424 million, after growing 89% in 2021, but it still only makes up 0.2% of total digital ad spending, according to Insider Intelligence. Proving out additional use cases for advertisers, such as search, could juice those numbers. Reddit chief operating officer Jen Wong told Digiday that the search use case is part of its marketer acquisition strategy. Reddit declined to comment for this article, as it's in a quiet period ahead of its IPO. But marketers largely still see it as more of a social than search platform, albeit a particularly unique one. Three agency execs interviewed by Adweek identified different reasons why they use the platform, including its unduplicated reach and contextual capabilities. Reddit’s different use cases for consumers and advertisers speak to the challenge for platforms outside the Facebook and Google duopoly to fit into sometimes rigid advertising templates. “Everything about Reddit is a little bit different [than other platforms] in terms of how you think about finding an audience and what the ad units are,” the media agency exec said. Outside of the search box While agency buyers can make the argument that Reddit is a search platform, the buying process is much more akin to other social platforms, executives said. Agency silos aside, Reddit simply doesn’t drive the same results for search marketing as Google, even if some users prefer it. “Reddit doesn’t compare very well compared to branded keyword searches on Google,” the executive said. “It competes better against social platforms, where it’s more mid funnel." Others—like director of social at digital agency PMG, Carly Carson—agree, saying Reddit delivers more on mid-to-upper funnel goals. Reddit Reaches Global Enterprise Partnership Agreement With IPG Mediabrands “It is typically in that inspire and educate realm,” Carson said. Furthermore, Reddit’s paid ad formats are less suited for answering specific queries. If a cleaning brand wanted to answer a question about stain removal, it would be easier for them to do it manually via an organic social or public relations strategy, the media executive said. Tailoring a paid campaign to meet the specificity of these questions is not usually worth the legwork, the executive said. Partly because Reddit's user base is smaller. Reddit said that it averaged 52 million daily active users in October 2020. “There has to be some amount of scale, or else, is the juice worth through the squeeze?” the executive said. Different marketers, different use cases Reddit has long been a bit of a mystery to marketers. Executives for this article gave distinct (though overlapping) answers about why they use the platform. The first media executive pointed out that it was ideal for technology, entertainment and sports brands looking to reach communities of enthusiasts. A second agency media buyer, who also requested anonymity, said Reddit’s best asset was its unduplicated reach, helping brands find audiences that aren’t on other platforms. Only about 24.5% of Reddit users use Facebook, according to Insider Intelligence, while only 28% use YouTube. “[Data] shows consistently that Reddit users were the least penetrated in other social media platforms,” said Nazmul Islam, forecasting analyst at Insider Intelligence. Another key selling point is Reddit's powerful contextual targeting capabilities, said Carson, an increasingly important tool for marketers amid cookie depreciation. “[For a skin care product], in a skin care Reddit [thread] we can align our brand messages directly as people are having those conversations,” Carson said. “In the other feed-based environments, you can’t achieve the adjacency in the same way.” Reddit Bans Links to Russian State-Controlled Media Outlets Reddit is not the only platform that belies such easy categorization. Sources pointed to Pinterest, Yelp, YouTube and Quora as also straddling the search and social divide. But for all the handwringing it causes marketers, Reddit’s niche can be an asset. “Being an outlier can really be a challenge. That’s not to say we haven’t had successful campaigns” the first executive said. “There is a huge opportunity in terms of reach and users.”

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Search or Social? Why Marketers Lag in Recognizing Reddit’s Search Credentials

Despite people using the website like Google, marketers still see it as a social platform

Catherine Perloff

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Catherine Perloff