Reddit is undergoing a significant shift in its advertising strategy by discontinuing the ability to opt-out of ad personalization based on user activity within the platform. Although this change will not result in an increased ad frequency, users can anticipate more precise and tailored advertisements. While “select countries” will retain opt-out controls for Reddit users, the specific regions implementing these controls have not been officially disclosed.
Why This Matters
This adjustment empowers Reddit’s algorithms to make more accurate predictions regarding which ads might resonate most effectively with users, offering brands a valuable opportunity to reach a higher-value consumer base. Advertisers should seize this chance to connect with their target audience, enhancing the efficiency of their campaigns, reducing costs, and increasing engagement and conversion rates.
Timing Is Key
Reddit’s CEO, Steve Huffman, underscored the growing importance of monetization for the platform in June, stating, “Getting to breakeven is a priority for us in any climate.” This strategic alteration positions Reddit to efficiently identify relevant audiences, facilitating the delivery of ads to more valuable consumers and rendering the platform more enticing to advertisers.
Category-Based Opt-Out
Additionally, Reddit is granting users the option to view fewer ads from specific categories, including Alcohol, Dating, Gambling, Pregnancy & Parenting, and Weight Loss. The platform employs a combination of manual tagging and machine learning to categorize ads. While initial implementation may not achieve 100% accuracy, Reddit is committed to refining the process.
Toggle Consolidation
In conjunction with the aforementioned changes, Reddit is consolidating two toggles into a single location preferences setting, simplifying the customization of users’ feeds and recommendations. It remains uncertain whether these settings will inherently affect post suggestions, and the availability of an option to disable them has yet to be confirmed.
Insights from Reddit
Reddit’s head of privacy, known by the pseudonym “snoo-tuh” (as Reddit keeps admin identities confidential), conveyed the platform’s minimalistic approach to personal information collection, stating, “Reddit requires very little personal information, and we like it that way. Our advertisers instead rely on on-platform activity—what communities you join, leave, upvote, downvote, and other signals—to get an idea of what you might be interested in.” Furthermore, “The vast majority of redditors will see no change to their ads on Reddit. For users who previously opted out of personalization based on Reddit activity, this change will not result in seeing more ads or sharing on-platform activity with advertisers. It does enable our models to better predict which ad may be most relevant to you.”
In summary, Reddit’s decision to enhance ad personalisation by discontinuing the opt-out option reflects the platform’s commitment to offering users more tailored and engaging ad experiences while bolstering its appeal to advertisers seeking to connect with their target audiences more effectively.
Source: Business of Apps
