Dive Brief:
- Reddit is launching a new advertising program — called Promoted User Posts — on August 4 that will allow brands to sponsor users' posts on the online forum, according to Ad Age.
- If a brand wants to sponsor a user's post, Reddit will contact the user and ask permission to let the brand sponsor their post. Users who let a brand sponsor their post will get a lifetime subscription ot Reddit Gold, the forum's premium membership program. Among other features, Reddit Gold members can turn off advertising on the platform.
- Once brands have permission to sponsor a post, Reddit will allow them to target the sponsored post to select users on the site. Reddit says it is putting together a team that will pinpoint Reddit posts brands may be interested in sponsoring.
Dive Insight:
Can Reddit offer brands a viable marketing vehicle to engaged internet users? That's what Reddit cofounders Steve Huffman and Alexis Ohanian are looking to do with the company's latest ad program.
In a world rife with ad blocking, Reddit hopes it can thread the needle between giving users the experience they want while still offering marketers valuable advertising opportunities. The challenge is that Reddit's user base has long been averse to anything that smacks of marketing or commercialism.
"Reddit users don't like being bullshitted," Reddit cofounder Steve Huffman told Ad Age. "Reddit is a platform where you can call people out on it. And a lot of traditional advertising feels like we're being taken advantage of and nobody likes that. But when advertisers come with honest intentions we see a much higher level of engagement with the brand. We don't see hostility and we have valuable connections."
While Reddit has long been lumped in with legacy web destinations like Craiglist, Reddit fancies itself more of a social media platform like Facebook. Reddit boasts a very active base of 240 million users who are known for being protective of what they see as their turf — especially toward brands looking to exploit the online community for commercial opportunities.
By Huffman’s own words, marketing to that audience will be difficult, but it can also bring high rewards.
"This isn't traditional display advertising," Mr. Huffman said. "This is different and more personable. You have to bring your A game here and if you do, it works amazingly."
