Reddit begins testing contextual advertising across search results

Reddit announced on Tuesday that it has started testing ad placements directly within search results pages. The initial trial is limited to a select group of eligible advertisers looking to reach people searching for product recommendations and general information on the platform. [3][4]

Reddit says the new placements appear based on factors such as contextual relevance to user queries, noting that a search for "espresso station" could show ads for espresso machines, coffee, or mugs. The platform already serves ads within feeds and comment threads through image, video, sponsored post, and AMA formats. [3][4]

The test follows a third-quarter earnings report where Reddit provided a weaker-than-expected fourth-quarter revenue guidance of $1 billion to $1.03 billion, below analyst forecasts of $1.05 billion. Reddit faces declining search referrals as Google expands AI features that directly answer queries, while its U.S. daily active users slipped from 53.2 million in the second quarter to 50.7 million in the third quarter. To build higher-value ad targeting and protect content from AI scraping, Reddit also plans a gradual transition to a logged-in experience, starting in markets outside the U.S. [3]