Reddit shipped two updates for its 116 million daily users. Interactive Ads (currently alpha) let you run quizzes, countdown timers, and mini-games directly in the feed. Automated targeting got redesigned and now generates 11% more conversions with 10% lower CPA, 5.2% more impressions for awareness campaigns, and 4.1% lower CPC for traffic.
Automated targeting is live for everyone. Interactive Ads are alpha-only with Paramount, EA, Red Bull, and the Ad Council testing.
Performance Comparison
Interactive Ads: What They Actually Are
Users tap your ad to reveal interactive content without leaving Reddit. No landing page clicks required.
Two options:
- Templates (quizzes, countdowns, trivia, dynamic reveals) for quick deployment.
- Custom builds with Reddit's KarmaLab team for enterprise campaigns.
Real Examples from Alpha
Paramount promoted The Running Man with an escape game where users help Glen Powell dodge surveillance drones. Completing it unlocked an exclusive teaser. Development time: ~3 weeks.
EA launched Battlefield with two Interactive Ads, a collective mission tracking community progress in real-time, plus a countdown timer building pre-launch hype.
Red Bull and Ad Council are testing but haven't shared details.
Access: Alpha-only for managed advertisers. Reddit says all managed advertisers get access in 2026, with self-serve templates coming later (no specific timeline). No public info on minimum spend, but expect enterprise-level commitments for custom builds.
Automated Targeting: The One Change That Matters
Reddit reorganized audience settings:
Audience Suggestions = flexible signals (customer lists, interests, demographics, subreddits). These work on OR logic, Reddit can target your list OR gaming enthusiasts OR specific ages, whichever converts better.
Audience Controls = hard boundaries (geography, age restrictions, language).
The breakthrough is OR replacing AND. Previously, if you set custom audiences + demographic filters, ads only showed people meeting ALL criteria simultaneously. Tiny audiences. Now Reddit's AI tests each signal separately and expands to find more converters.
The Performance Data
According to Reddit's official documentation:
- +11% conversion volume with -10% lower CPA (conversion campaigns)
- +5.2% more impressions (awareness campaigns)
- -4.1% lower CPC (traffic campaigns)
One advertiser switched from 8 demographic filters to 2 geographic controls: 34% more conversions at 18% lower CPA.
Why Reddit Ads Matter Now
Reddit's Q3 2025 results: $585M revenue (up 68% YoY), $549M from advertising (up 74%). The platform hit 116 million daily actives (19% growth) spending 24 minutes daily.
More important: Reddit is the second-most-visited website in the US per Semrush, and Reddit discussions increasingly appear in AI-generated responses from Google and ChatGPT. Your ads don't just reach Reddit's audience, they influence conversational search results.
How to Use These Updates
Automated Targeting (Live Now)
Create a campaign in Reddit Ads Manager.
Add 2-4 Audience Suggestions:
- Custom audiences (customer lists, pixel retargeting)
- Interest categories
- Subreddit communities
- Demographic preferences
Set minimal Audience Controls:
- Geographic boundaries only if necessary
- Age restrictions only if legally required
Run 7 days before judging. Reddit's AI needs time to learn. The biggest performance gains come from minimal controls, one geo restriction beats five demographic filters.
Interactive Ads (Alpha Only)
Contact Reddit sales at reddit.com/advertise. Discuss objectives, timeline (custom builds take 2-4 weeks), and budget. If accepted, you'll work with KarmaLab to develop concepts.
The Tracking Gap Nobody Mentions
Reddit users research on Reddit, then buy through Google search or direct visits days later. Last-click attribution misses this. Even with Reddit Pixel and Conversions API, expect 20-30% of conversions to go untracked.
Track beyond Reddit's dashboard:
- Brand search volume (Google Search Console)
- Direct traffic spikes (Google Analytics 4)
- Assisted conversions (GA4 multi-touch attribution)
- Subreddit brand mentions
For agencies managing multiple accounts across platforms, manual exports consume hours. You can use Reddit's API, or if you're already consolidating Google Ads, Facebook, LinkedIn, and other platforms, automate everything to Google Sheets or Looker Studio. (We wrote a guide to importing Reddit Ads cost data into GA4 covering the technical setup.)
Common Mistakes
Spending too little: Automated targeting needs $50+/day minimum. At $10/day, the AI doesn't have enough data to optimize.
Expecting immediate sales from Interactive Ads: These drive awareness and consideration, not direct response. Value shows up 30-60 days later in assisted conversions.
Ignoring Reddit culture: A quiz titled "How Well Do You Know Our Product?" bombs. "Test Your Gaming Knowledge" works even if you're promoting a game. The community hates obvious selling.
Over-constraining automated targeting: Every additional filter reduces the AI's ability to find converters. Use Audience Controls only for absolute requirements.
What Happens Next
2026 Q1-Q2: Interactive Ads expand to all managed advertisers. Case studies reveal which formats work best by industry.
2026 H2: Self-serve Interactive Ad templates launch for smaller advertisers.
Ongoing: Automated targeting improves as Reddit's AI trains on more conversion data.
FAQ
What are Reddit Interactive Ads?
Interactive content users engage with directly in-feed, no landing page required. Options include templated formats (quizzes, countdowns, trivia) or custom builds with Reddit's KarmaLab team. Paramount's escape game for The Running Man unlocked an exclusive teaser upon completion. Currently alpha-only for select managed advertisers, expanding to all managed advertisers in 2026.
How much do Interactive Ads cost?
Reddit hasn't disclosed minimums. Currently alpha-only, contact Reddit sales to request access. Custom builds take 2-4 weeks from concept to launch. Template options should be more accessible when they hit self-serve, but no pricing or timeline announced.
What results can I expect from automated targeting?
11% more conversions at 10% lower CPA for conversion campaigns. 5.2% more impressions for awareness. 4.1% lower CPC for traffic. These are measured results from Reddit's pre-launch testing, not projections. The system needs 7+ days to learn which segments convert.
Should I use Audience Suggestions or Audience Controls?
Use Suggestions for anything you want Reddit to consider (custom audiences, interests, demographics). Use Controls only for absolute requirements (geography, legal age restrictions). One advertiser switched from 8 filters to 2 controls and got 34% more conversions at 18% lower CPA. Over-constraining kills performance.
How do I track Reddit ads across multiple platforms?
Reddit's dashboard shows direct conversions but misses assisted conversions where users see your ad but convert later through other channels. Track brand search volume in Search Console, direct traffic in GA4, and assisted conversions using multi-touch attribution. Expect 20-30% of actual conversions to go untracked. For cross-platform reporting, use Reddit's API or automate data consolidation to your reporting tool.
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