Reddit Ad Benchmarks, lets start:
Reddit has become a powerhouse in digital advertising. Its highly engaged niche communities give brands a chance to connect with audiences in ways that traditional social media can’t. If you’re running ads on Reddit in 2025, knowing the latest benchmarks and best practices will help you get the best ROI.
Reddit’s Growing Ad Platform
Reddit advertising is on the rise. In 2023, ad revenue hit $788.78 million, and experts expect it to top $1 billion by the end of 2024. More brands are getting involved, drawn to Reddit’s active users and its improved targeting options. (mycodelesswebsite.com)
The platform continues to expand its ad formats. Advertisers now have access to native video ads, interactive posts, and more advanced targeting tools. If you want to stay competitive, it’s crucial to stay up to date on these evolving features.
Key Reddit Ad Metrics
Understanding Reddit ad performance requires analyzing key metrics that determine success. These benchmarks are essential for optimizing campaigns and ensuring return on investment (ROI). By integrating real-world case studies, industry best practices, and expert insights, brands can maximize engagement and profitability on Reddit.
Why These Metrics Matter
Reddit's advertising ecosystem is unique due to its community-driven nature. Unlike traditional social media platforms, Reddit relies on highly engaged niche communities. This means ad success depends on audience alignment, trustworthiness, and relevance.
Advertisers who track key performance indicators (KPIs) can refine their approach to achieve higher conversions and better engagement rates.
Detailed Breakdown of Key Metrics
Click-Through Rate (CTR): Measures how often users click on an ad. Reddit CTRs range from 0.19% and up, depending on ad relevance, creative quality, and subreddit engagement. Brands with strong, community-specific messaging often see higher CTRs. (mycodelesswebsite.com)
Industry Insight: Advertisers who use native-style content (e.g., memes, AMAs, and authentic discussions) tend to have a 30% higher CTR than those using corporate-style ads.
Case Study: A gaming company targeting r/gaming saw its CTR increase by 45% after adopting ad creatives featuring insider jokes and user-generated content.
Cost Per Click (CPC): How much an advertiser pays per click. Reddit CPCs are generally 52% lower than on other platforms, making it an attractive option for cost-conscious marketers. (mycodelesswebsite.com)
Expert Take: Advertisers using highly specific targeting (by subreddit, interest, and behavior) reduce CPC by up to 40% compared to broad targeting.
Case Study: A software startup in r/technology refined its targeting to focus on engaged users, leading to a CPC reduction of 35% and a 70% increase in engagement.
Conversion Rate (CVR): The percentage of users who complete a desired action after clicking an ad. Some brands experience up to 8x higher CVRs on Reddit compared to other platforms. (mycodelesswebsite.com)
Factors Impacting CVR:
Landing page relevance and speed
Call-to-action (CTA) alignment with Reddit user intent
Trust signals (e.g., real customer reviews, case studies, community engagement)
Best Practice: Ads leading to informative, well-structured landing pages see 60% higher conversion rates than those directing users to generic homepages.
Return on Ad Spend (ROAS): The revenue generated per dollar spent. Some Reddit advertisers see ROAS as high as 17x, but this varies by industry and campaign structure. (mycodelesswebsite.com)
Case Study: An e-commerce brand in r/deals leveraged Reddit’s promo-friendly subreddits, increasing ROAS by 12x compared to their Facebook ad campaigns.
Pro Tip: Brands that respond to user comments under their ads tend to increase engagement and ROAS by up to 25%.
How to Improve Your Reddit Ad Metrics
Leverage Community Trust: Redditors value transparency. Authentic ads that align with subreddit culture outperform traditional promotional content.
Optimize for Mobile: Over 70% of Reddit users access the platform via mobile. Ensure your landing pages are mobile-friendly and load quickly.
Use A/B Testing: Experiment with different headlines, ad creatives, and CTAs to identify what resonates best with specific subreddit audiences.
Engage With Users: Responding to comments can increase CTR and conversions by fostering trust and interaction.
Analyze Sentiment Data: Monitor how Redditors react to your ads. Sentiment analysis tools can help adjust messaging to improve engagement rates.
By prioritizing these best practices and continuously refining strategies based on Reddit-specific engagement trends, brands can maximize their advertising success on the platform.
Reddit Ad Benchmarks by Campaign Type
Reddit ad benchmarks vary significantly based on campaign goals, audience engagement, and ad formats. Analyzing these benchmarks allows advertisers to refine their strategies and optimize performance.
Below is a detailed breakdown of how different campaign types perform in Australia, along with insights into the provided data.
Understanding Reddit Ad Benchmarks
Reddit ads can vary widely depending on the objective. For example, campaigns aimed at app installs often require a lower cost-per-click (CPC) but a high engagement rate to ensure conversions. Meanwhile, brand awareness campaigns typically have higher CPMs due to broader reach objectives.
Looking at the data, we see substantial differences in performance:
App Install Campaigns tend to have a lower CPC but require higher engagement for successful conversions.
Brand Awareness Campaigns involve higher CPMs, as they focus on visibility rather than direct engagement.
Catalog Sales Campaigns show the lowest CTR, which may indicate a need for stronger audience targeting and ad creative optimization.
Evaluating Performance Metrics
Comparing these numbers to industry standards, the provided data suggests that:
App install ads on Reddit have an average CPC of $0.56, which is competitive compared to Facebook and Google ads in similar categories.
Brand awareness campaigns see a CPM of $2.91, which aligns with standard costs for social media platforms, though engagement on Reddit may be more dependent on subreddit selection.
Catalog sales campaigns show the lowest CTR (0.09%), which may suggest that Reddit users are less likely to engage with direct sales-driven ads unless the product is highly relevant to their interests.
Regular performance tracking and A/B testing will be crucial for advertisers looking to improve engagement rates and maximize ROI on Reddit campaigns.
Reddit Ad Benchmarks Australia:
App Installs:
Avg. Bid: $1.15
Avg. CTR: 0.32%
Avg. CPM: $1.78
Avg. CPC: $0.56
Avg. CPV: $0.03
Brand Awareness:
Avg. Bid: $7.09
Avg. CTR: 0.23%
Avg. CPM: $2.91
Avg. CPC: $1.26
Avg. CPV: $0.03
Catalog Sales:
Avg. Bid: $0.50
Avg. CTR: 0.09%
Avg. CPM: $0.32
Avg. CPC: $0.35
Reddit Ad Benchmarks United Kingdom:
App Installs:
Avg. Bid: $1.61
Avg. CTR: 0.27%
Avg. CPM: $2.11
Avg. CPC: $0.78
Avg. CPV: $0.05
Brand Awareness:
Avg. Bid: $6.96
Avg. CTR: 0.24%
Avg. CPM: $4.73
Avg. CPC: $1.96
Avg. CPV: $0.07
Catalog Sales:
Avg. Bid: $2.40
Avg. CTR: 0.20%
Avg. CPM: $3.56
Avg. CPC: $1.76
Conversions:
Avg. Bid: $1.79
Avg. CTR: 0.31%
Avg. CPM: $2.15
Avg. CPC: $0.69
Avg. CPV: $0.07
Avg. Bid: $1.15
Avg. CTR: 0.32%
Avg. CPM: $1.78
Avg. CPC: $0.56
Avg. CPV: $0.03
Brand Awareness:
Avg. Bid: $7.09
Avg. CTR: 0.23%
Avg. CPM: $2.91
Avg. CPC: $1.26
Avg. CPV: $0.03
Catalog Sales:
Avg. Bid: $0.50
Avg. CTR: 0.09%
Avg. CPM: $0.32
Avg. CPC: $0.35
Reddit Ad Benchmarks United States:
App Installs:
Avg. Bid: $8.06
Avg. CTR: 0.36%
Avg. CPM: $8.76
Avg. CPC: $2.43
Avg. CPV: $0.14
Brand Awareness:
Avg. Bid: $7.02
Avg. CTR: 0.18%
Avg. CPM: $5.29
Avg. CPC: $2.87
Avg. CPV: $0.08
Catalog Sales:
Avg. Bid: $3.27
Avg. CTR: 0.18%
Avg. CPM: $2.58
Avg. CPC: $1.44
Conversions:
Avg. Bid: $4.75
Avg. CTR: 0.31%
Avg. CPM: $5.10
Avg. CPC: $1.63
Avg. CPV: $0.11
Traffic:
Avg. Bid: $2.63
Avg. CTR: 0.36%
Avg. CPM: $4.89
Avg. CPC: $1.37
Avg. CPV: $0.08
Video Views:
Avg. Bid: $0.21
Avg. CTR: 0.31%
Avg. CPM: $11.24
Avg. CPC: $3.60
Avg. CPV: $0.04
Reddit Ad Benchmarks Canada:
App Installs:
Avg. Bid: $1.18
Avg. CTR: 0.28%
Avg. CPM: $2.03
Avg. CPC: $0.76
Avg. CPV: $0.04
Brand Awareness:
Avg. Bid: $7.04
Avg. CTR: 0.20%
Avg. CPM: $3.91
Avg. CPC: $2.21
Avg. CPV: $0.06
Catalog Sales:
Avg. Bid: $3.05
Avg. CTR: 0.22%
Avg. CPM: $2.21
Avg. CPC: $0.68
Conversions:
Avg. Bid: $2.44
Avg. CTR: 0.27%
Avg. CPM: $2.07
Avg. CPC: $0.84
Avg. CPV: $0.08
Traffic:
Avg. Bid: $2.00
Avg. CTR: 0.31%
Avg. CPM: $2.21
Avg. CPC: $2.06
Avg. CPV: $0.05
Video Views:
Avg. Bid: $0.13
Avg. CTR: 0.24%
Avg. CPM: $4.72
Avg. CPC: $1.57
Avg. CPV: $0.02
Reddit Ad Benchmarks Germany:
App Installs:
Avg. Bid: $1.01
Avg. CTR: 0.38%
Avg. CPM: $2.24
Avg. CPC: $0.58
Avg. CPV: $0.02
Brand Awareness:
Avg. Bid: $6.45
Avg. CTR: 0.20%
Avg. CPM: $4.19
Avg. CPC: $2.06
Avg. CPV: $0.04
Catalog Sales:
Avg. Bid: $1.15
Avg. CTR: 0.15%
Avg. CPM: $1.26
Avg. CPC: $0.82
Avg. CPV: $0.09
Conversions:
Avg. Bid: $3.01
Avg. CTR: 0.32%
Avg. CPM: $2.63
Avg. CPC: $0.83
Avg. CPV: $0.09
Traffic:
Avg. Bid: $2.11
Avg. CTR: 0.35%
Avg. CPM: $4.35
Avg. CPC: $1.25
Avg. CPV: $0.03
Video Views:
Avg. Bid: $0.05
Avg. CTR: 0.22%
Avg. CPM: $4.96
Avg. CPC: $2.21
Avg. CPV: $2.02
Avg. Bid: $1.61
Avg. CTR: 0.27%
Avg. CPM: $2.11
Avg. CPC: $0.78
Avg. CPV: $0.05
Reddit Ad Benchmarks
These numbers show which campaign types are performing well and where improvements may be needed. Regularly monitoring your data and adjusting your approach can help you maximize results.
What Affects Reddit Ad Performance?
Reddit advertising operates differently from traditional platforms like Facebook or Google, requiring advertisers to understand the unique user behavior and platform-specific best practices. Here are key factors that can influence your campaign’s success:
Subreddit Targeting: Reddit is structured around niche communities, each with its own interests, culture, and etiquette. Ads that seamlessly integrate into subreddit discussions tend to perform best. Researching each subreddit’s guidelines and engagement style is crucial. Brands that personalize their messaging for specific communities see higher engagement and lower ad fatigue. Leveraging first-hand user insights and historical campaign data can provide a more accurate picture of what works within each subreddit.
Authenticity Matters: Reddit users value transparency and organic interactions. Traditional corporate messaging often falls flat on this platform. Ads that are designed to blend in with the natural Reddit conversation or provide real value (such as educational content, humor, or product transparency) tend to generate more positive responses. User-generated content (UGC) and testimonials can increase credibility. Highlighting real-world case studies and authentic brand experiences also enhances trustworthiness, making it more likely that users engage positively with your brand.
Location Affects Cost: Ad costs and performance can vary widely depending on geographic targeting. The U.S. remains the most competitive market, leading to higher cost-per-click (CPC) and cost-per-thousand-impressions (CPM). Meanwhile, regions like Australia and parts of Europe can provide lower-cost opportunities for advertisers looking to expand their reach. Understanding audience behavior in different regions and tailoring your ad creatives to cultural nuances can improve engagement rates. (theredditmarketingagency.com)
User Sentiment and Engagement: Unlike other platforms, Reddit allows for direct and unfiltered user feedback. If an ad is seen as intrusive or inauthentic, Redditors won’t hesitate to downvote or criticize it in the comments. Monitoring sentiment and engagement metrics, such as upvote ratios and comment sentiment, can help advertisers adjust their messaging in real time.
Content Type and Format: Reddit supports multiple ad formats, including static images, videos, and text-based ads. Data suggests that interactive and video-based content generates higher engagement rates, especially when it aligns with the subreddit’s preferred content style. Conducting A/B testing on different formats can help determine what resonates best with your audience.
By incorporating these insights and leveraging real-world campaign data, brands can optimize their Reddit ad strategies, ensuring both performance and user trust are maximized.
Reddit Ads Conversion Rate: What to Expect in 2025
Reddit ads are a different beast compared to traditional social media platforms. While conversion rates vary by industry and targeting, advertisers who understand how to blend into the conversation can achieve significantly higher engagement and conversions than those running generic, disruptive ads.
What’s a Good Conversion Rate for Reddit Ads?
On average, Reddit ads see a conversion rate between 0.8% and 2.5%, depending on factors like ad format, subreddit targeting, and offer relevance. Here’s a breakdown by industry:
eCommerce: 1.5% – 3.0% (Best for niche product targeting)
SaaS & B2B: 0.8% – 2.2% (Longer sales cycles but strong lead generation)
Finance & Crypto: 1.2% – 2.5% (High engagement in finance-focused subreddits)
Gaming & Tech: 2.0% – 4.5% (Strong communities, high purchase intent)
Compared to Facebook (which averages 2.5% – 3.5%), Reddit’s conversion rates may seem lower at first glance. But don’t be fooled—Reddit users are highly engaged and spend more time researching before making a decision. This means that while direct conversions may take longer, they’re often higher quality.
How to Improve Reddit Ads Conversion Rates
Target the Right Subreddits: A niche subreddit with 500,000 engaged members can outperform a general one with 10 million. Find where your audience is already discussing your product.
Write Like a Redditor: Avoid salesy language. Instead, create ads that feel like natural posts, sparking curiosity and discussion.
Leverage Retargeting: Users may not convert immediately. Use Reddit Pixel to retarget users who engaged but didn’t complete an action.
A/B Test CTAs: A small tweak—like changing “Get Started” to “Try It Free”—can increase conversions by 20-30%.
Pro Tip: Brands that actively engage in the comment section of their ads often see a 15-20% increase in conversions, as Redditors appreciate transparency and direct interaction.
Mastering Reddit’s ad ecosystem takes strategy, but when done right, it delivers some of the most loyal and high-value customers of any ad platform.
Advanced Reddit Ad Strategies
If you’re looking to improve ad performance, try these strategies:
1. Use Video Ads
Video content gets 38% more engagement than static images. Reddit’s autoplay video feature can make your ad stand out in a user’s feed. (veuno.com)
2. Run an AMA (Ask Me Anything)
Hosting an AMA lets you connect directly with Reddit users. It builds trust and credibility while giving your brand a human touch. (guptamedia.com)
3. Take Advantage of Reddit’s New Ad Tools
Reddit continues to refine its advertising tools. Features like Pro Trends and AMA Ads help brands better target users and improve conversion rates. (emarketer.com)
4. Work with Reddit Ad Experts
Hiring an agency with Reddit ad experience can help fine-tune your campaigns. These agencies understand the platform’s nuances and can help improve results. (theredditmarketingagency.com)
How to Measure Your Success
Tracking performance is key to improving your Reddit ads. Here’s what you should monitor:
Engagement Metrics: CTR, upvotes, comments, and shares show how well your ad resonates.
Conversion Metrics: Track sign-ups, purchases, and other goal completions to gauge success.
Cost Metrics: Keep an eye on CPC, CPM, and ROAS to ensure your budget is being spent efficiently.
Audience Feedback: Read comments and community reactions to gauge how your ad is perceived.
Final Thoughts
Reddit’s advertising platform is growing rapidly. To stay ahead, you need to track key metrics, refine your approach, and keep up with the latest trends. With the right strategy, Reddit ads can deliver outstanding ROAS and help you connect with highly engaged audiences.
Frequently Asked Questions (FAQs) About Reddit Advertising
1. What makes Reddit ads different from Facebook and Google ads?
Reddit ads thrive on community engagement and authenticity. Unlike Facebook and Google, Redditors prefer organic discussions and value-driven content rather than overtly promotional messaging.
2. How much should I budget for Reddit ads?
The budget depends on campaign goals, industry, and targeting. CPCs are typically lower than other platforms, making Reddit an affordable option. A good starting point is $500–$1,000 to test performance.
3. What’s the best subreddit targeting strategy?
Choose subreddits that align with your product or service. Research engagement levels and audience interests. Avoid broad targeting—specific subreddit alignment leads to better engagement and lower ad costs.
4. What type of content works best for Reddit ads?
Authentic, discussion-driven, and informative content performs best. Ads formatted like native Reddit posts, AMAs, and meme-driven creatives see higher engagement.
5. How can I track the success of my Reddit ads?
Use Reddit’s ad dashboard to monitor CTR, CPC, ROAS, and engagement metrics. Google Analytics can also track conversions from Reddit traffic.
6. Are video ads effective on Reddit?
Yes! Video ads have a 38% higher engagement rate than static ads. They work well in visually driven subreddits and can capture attention quickly.
7. How does Reddit’s auction system work?
Reddit uses a bidding system similar to other ad platforms. Higher bids win more impressions, but relevance and engagement also impact ad placements.
8. What’s the best way to increase ROAS on Reddit ads?
Focus on targeting the right subreddits, A/B test creatives, and engage with users in the comments. Optimized landing pages and value-driven messaging also help.
9. How does Reddit handle negative feedback on ads?
Redditors are vocal. If an ad is too promotional or irrelevant, it may receive downvotes and negative comments. Brands should engage positively and take feedback constructively.
10. What industries perform best on Reddit?
Tech, gaming, e-commerce, and software brands tend to perform well. However, any brand that understands its niche and tailors its messaging for Reddit can see success.
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