{"id":630627,"date":"2023-04-18T09:49:44","date_gmt":"2023-04-18T14:49:44","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/04\/18\/media-buying-briefing-reddit-expands-outreach-to-independent-agencies-as-its-ad-revenue-rises\/"},"modified":"2023-04-18T09:49:44","modified_gmt":"2023-04-18T14:49:44","slug":"media-buying-briefing-reddit-expands-outreach-to-independent-agencies-as-its-ad-revenue-rises","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/04\/18\/media-buying-briefing-reddit-expands-outreach-to-independent-agencies-as-its-ad-revenue-rises\/","title":{"rendered":"Media Buying Briefing: Reddit expands outreach to independent agencies as its ad revenue rises"},"content":{"rendered":"

Popular but under-the-radar social platform Reddit (that is, compared to the Instagrams and TikToks of the world) is making yet another push to woo advertisers \u2014 smartly by going through their media agencies<\/a>. <\/p>\n

Having reached partnership agreements with all the major holding companies, the current push is to bring more independent media agencies into the fold as well. This all comes as Reddit works to make its ad offerings more sophisticated and level with its social competition \u2014 one of which, Twitter, is struggling to keep its ad revenue robust.\u00a0<\/p>\n

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Reddit last week announced partnerships with Horizon Media, PMG and Wpromote, as well as the expansion of an existing partnership with performance specialist Tinuiti from a year ago. According to Reddit, Tinuiti tripled its clients\u2019 ad spend on the platform over the last year. Among its clients are e.l.f. cosmetics, Unilever Health & Wellbeing Collective and Pacsun. <\/p>\n

Specifically, the media agencies will have the option to take advantage of advertiser incentives, get early access to new ad product tests as well as enhanced measurement tools. They will also have better access to KarmaLab, Reddit\u2019s in-house creative agency to help build campaigns for disruptor and challenger brands.<\/p>\n

\u201cWe\u2019re laser focused on both growing and diversifying our advertising base,\u201d said Evan Wolf, Reddit\u2019s head of mid-market and SMB sales, North America. \u201cThese independent agencies are cutting-edge: they\u2019re nimble, they\u2019re future-looking, they\u2019re innovative and they work with some of the coolest and best brands in the world.\u201d\u00a0<\/p>\n

\u201cThe marriage of bespoke insights and continued ad experience enhancements can come together to bring to life a more full-funnel experience on the platform,\u201d said Carly Carson, head of integrated media at PMG, who noted the agency is using its Alli marketing intelligence platform to deepen API integrations with Reddit.<\/p>\n

\u201cToday, I think the capabilities are almost to par with the rest of the platforms in our industry,\u201d said Avi Ben-Zvi, vp of paid social with Tinuiti. \u201cThere are a couple of things that they\u2019re still rolling out here and there, but it\u2019s changed really fast.\u201d Ben-Zvi noted in particular reserve buys with takeovers, compelling video units, carousels along with newer dynamic product ads.\u00a0<\/p>\n

Reddit\u2019s Wolf pointed to Tinuiti client e.l.f. cosmetics, which found that going past obvious channels on the platform such as r\/beauty yielded better results. \u201cThey\u2019re finding customers in places like r\/girlgamers, which is actually very relevant when you unpack insights into how people use the platform,\u201d he said. \u201cOur ability to show and share those insights with advertisers is helping them find and grow their customer base. And that\u2019s the type of work that doesn\u2019t end when the campaign ends.\u201d<\/p>\n

\u201cit\u2019s now getting to the level where it\u2019s comparable\u201d with other social platforms given its longevity in the social space, added Ben-Zvi. \u201cThe question is now, can we scale that capability? And can we measure properly to prove out that impact as well?\u201d<\/p>\n

Darren D\u2019Altorio, vp of paid social at Wpromote, said his agency is getting three levels of value from the partnership: education, performance validation and measurement, and creative insights from KarmaLab. The creative side is especially important since D\u2019Altorio noted that Reddit\u2019s communities are especially sensitive to advertising that doesn\u2019t talk to them on their levels.\u00a0<\/p>\n

\u201cIf you\u2019re going to be on Reddit, you have to come to the table with a thoughtful approach,\u201d said D\u2019Altorio. \u201cThe Reddit community values comedy, sarcasm, certain aspects of self deprecation, brutal honesty. There are some really cool, creative gateways to have some fun with your brand on Reddit, which might be a departure from how you show up on other platforms.\u201d\u00a0<\/p>\n

According to Statista, Reddit grew ad revenue 39% percent to $424 million in 2022 over \u201821, with a similar sized bump expected for 2023. Reddit declined to comment on those revenue estimates, citing a quiet period prior to going public <\/strong>sometime later this year.<\/p>\n

Might Reddit pick up some of the ad-sales steam being let out of Twitter, whose latest global ad revenue forecast got slashed by 27.9% from $4.14 billion in 2022 to $2.98 billion by the end of 2023? That\u2019s what Insider Intelligence forecasts \u2014 the platform\u2019s second consecutive downgrade following Tesla CEO Elon Musk\u2019s takeover in 2022.<\/p>\n

In Q3 2022, after the acquisition began in April, analysts downgraded the outlook for Twitter\u2019s ad business by 30%. In the U.S., Insider Intelligence noted an ad revenue decline of 28.6% to $1.68 billion in 2023, compared to $2.36 billion in 2022. Twitter\u2019s share of the U.S. digital ad market is expected to drop from 1% to 0.6%, according to the report.<\/p>\n

Jasmine Enberg, principal analyst in social media at Insider Intelligence, said this latest downgrade comes in part because of declining trust from advertisers since Musk took over the company. Enberg added that ultimately Twitter\u2019s changes to its subscription service, Blue, and other efforts to bring back major advertisers have not worked to boost ad revenue \u2013 and won\u2019t not succeed so long as Musk is boss of the social platform.<\/p>\n

\u201cTwitter needs to unravel Musk\u2019s personal brand from the company\u2019s corporate image to regain advertiser trust and bring back ad dollars,\u201d Enberg said.<\/p>\n

Ben-Zvi noted that Reddit and Twitter are more alike than Reddit is to, say, TikTok or Instagram, so if the proverbial bloom is off the rose at Twitter, ostensibly Reddit could benefit. But he added that Tinuiti clients went from spending very little on Twitter to zero at this point, so there\u2019s not been a huge migration from one to the other.\u00a0<\/p>\n

Enberg agreed budgets aren\u2019t shifting radically away from Twitter since it hasn\u2019t historically been a huge social destination for advertisers. Additionally, she said that some ad dollars will be lost from the market this year due to businesses making cuts during a time of economic uncertainty.<\/p>\n

\u201cMany of the reallocated Twitter ad dollars will go to Meta, LinkedIn, and Pinterest, but it would be a stretch to call them beneficiaries,\u201d she said.<\/p>\n

Color by numbers<\/h2>\n

For now, it would seem short-form and video content is still experiencing the most engagement across social media usage for U.S. adults 18 and up in 2023, according to recent research from Insider Intelligence<\/strong>. TikTok is still winning the time spent competition by far. \u2014 AS<\/em><\/p>\n

Based on the average time spent per day by U.S. adults, the top social media platforms are:\u00a0<\/p>\n

\u2014TikTok: 55.8 minutes<\/p>\n

\u2014YouTube: 47.5 minutes<\/p>\n

\u2014Twitter: 34.1 minutes<\/p>\n

\u2014Snap: 30.8 minutes<\/p>\n

\u2014Instagram: 30.6 minutes<\/p>\n

\u2014Facebook: 30.2 minutes<\/p>\n

\u2014Reddit: 23.6 minutes<\/p>\n

Takeoff & landing <\/h2>\n