Reddit Begins Testing Ads in Search Results

Reddit is testing advertisements in its search results, adding another place for marketers to reach people using the platform. The company said the ads may be selected based partly on how closely they relate to a search. Someone looking for an “espresso station,” for example, could see promotions for coffee, machines or mugs; a search for a home office setup could bring up desks, monitors or chairs.

The initial trial is limited to a select group of eligible advertisers. Reddit said it will assess how users respond and use the results to adjust the experience. The company has not specified how frequently ads will appear. Images it shared placed them near the top of search results.

The move comes as Reddit faces weaker traffic from Google and slowing user figures. In its third-quarter results, global daily active users were 130.3 million, unchanged from the prior quarter. U.S. daily active users fell to 50.7 million from 53.2 million in the second quarter, and were down 2% year over year. Reddit also forecast fourth-quarter sales of $1 billion to $1.03 billion, below the $1.05 billion analysts expected, and its stock fell after the results.

Reddit has also said it plans to move gradually toward a logged-in-only experience, beginning outside the United States. The company says the change will help limit AI scraping; logged-in accounts can also provide advertisers with more signals for targeting. The search-ad test is one of several changes as Reddit seeks to adapt its business to shifting web traffic.