Reddit has carved out an upper funnel niche for brand advertisers

"This year we have more clients either who have just launched [on Reddit], or are getting ready to launch, than we've ever seen before. According to five media buyers who spoke with Digiday, the platform is attracting between 5-20% of paid media budgets from some brands, including retailers and beverage advertisers."

"Campaign tests showed a video completion rate for the spoiler ads 20% than regular in-feed video placements. The approach '[blended] content and commerce to create a fresh shoppable experience and lays the groundwork for future weekly Really Big Deal drops across emerging media formats,' said Lisa Schoder, vp of integrated marketing at JCPenney."

"As someone's scrolling through their feed, they actually can't see the ad until they click through and they reveal it. That really helped with surprise and intrigue, providing a boost to engagement through the Spoiler Ads format that mimics the platform's content-hiding feature used by users."

Reddit's advertising business has experienced significant growth, with the platform attracting increased investment from major brands including retailers and beverage companies. Media buyers report that brands are allocating between 5-20% of their paid media budgets to Reddit, with more clients launching or preparing to launch campaigns than ever before. JC Penney exemplifies this trend, running an autumn promotional campaign using Reddit's Spoiler Ads format, which mimics the platform's content-hiding feature. This format achieved a 20% higher video completion rate compared to standard in-feed placements. The Spoiler Ads approach created an interactive experience that generated surprise and intrigue among users. Reddit's ad revenue grew 75% in Q4 2025, reaching $690 million, demonstrating the platform's expanding role in digital marketing strategies.

Read at Digiday