Calling the communities on the site "naturally commercial," a blog post about the new ads claims that 40% of conversations on the site are related to purchasing decisions or products. Reddit argues that people trust these conversations, as 75% of users say they can have "genuine" discussions about brands or products on the platform.
Reddit wants to keep focusing on ads: Instead of charging you for features directly, most revenue comes from the ads the site shows you. Creating enough ad revenue to make a profit but keeping ads subtle enough that users can still have genuine interactions is a tricky balancing act.
Reddit's blog post claims Dynamic Product Ads provide a "contextually relevant, personalized ad experience." They populate product images and pricing in real time from the advertiser's site, allow brands to retarget customers who have engaged with an ad before, and support placement as both a single image or a carousel.
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