Reddit is expanding its keyword targeting advertising program, introducing it in more places and adding AI-powered recommendations to help ads appear in the most relevant environments across the platform. Keyword targeting is now available for feed ads in addition to conversations, which were previously the only placement available. Reddit is also launching an AI feature called dynamic audience expansion that works with keyword targeting to place ads before a wider range of viewers based on the objectives of the campaign. Since going public on the NYSE in March, Reddit has been under pressure to increase ad revenue.

The company reported $804 million from ads for 2023 and seems poised to pass the $1 billion mark this year. While that’s healthy growth, it is still the smallest of the big social media players. Even Snapchat generates more than twice as much from ads.

Search Engine Journal calls Reddit’s latest ad improvements a game-changer for how marketers can reach target audiences on the platform, bringing “fresh potential” to pay-per-click (PPC) marketers looking to tap into the platform’s “highly engaged user base.”

“Instead of serving ads to users scrolling passively through a general feed, Reddit is giving you the tools to place your ads into specific conversations, where users are already discussing topics related to your industry,” SEJ says of the expanded keyword search options.

“This multi-placement strategy ensures your ads appear in the most effective context for driving action, whether that’s in a user’s feed or within a specific conversation,” Reddit explains in a blog post.

Social Media Today sees it as “more opportunity to reach Reddit users across the app, by targeting specific conversations, not communities.”

While the keywording helps with precision, dynamic audience expansion amplifies that, helping with scale, so advertisers can broaden reach while maintaining relevance.

“Reddit’s AI does the heavy lifting by analyzing signals like user behavior and ad creative performance to identify additional users who are likely to engage with your ad,” Search Engine Journal reports, explaining that “for PPC marketers, this means more exposure without having to rely solely on manually selecting every keyword or interest.”

“Artificial intelligence provides the ability to identify precision in context,” adds MediaPost.

Search Engine Land suggests Reddit’s ability to leverage a community-centric structure for “contextual advertising opportunities” distinguishes it from other social media platforms, potentially helping it compete for ad dollars as it focuses on that outcome.

In August, AdExchanger called Reddit “the runt of the social media litter” in terms of advertising when viewed alongside “YouTube ($8 billion), TikTok ($10 billion), Instagram ($31 billion) or Facebook ($33 billion).” It added that “comparisons to competitors aside, Reddit is seeing a surge in advertiser activity.”