Reddit Ads: A Hidden Gem for startups?
When it comes to digital advertising, most small to medium-sized businesses in Australia and New Zealand naturally gravitate towards Google Ads or Meta (Facebook & Instagram). Especially Startups with lean resources will find Google Ads cost-daunting and Microsoft Ads a potential alternative, however, there’s another platform quietly building serious ad potential — Reddit.
While Reddit might not be the first platform that comes to mind, it offers a powerful combination of niche targeting, engaged communities, and relatively low competition. In this post, we’ll break down the fundamentals of Reddit Ads, what makes it different, and whether it might be worth exploring for your business.
What is Reddit?
Reddit is a massive online community made up of over 100,000+ active subreddits (essentially forums) focused on specific interests — from startups to skincare, SaaS to small business finance, and everything in between.
With over 70 million daily active users, Reddit users are often highly engaged, opinionated, and deeply embedded in their niche communities — making it a goldmine for advertisers who get the messaging right.
Why Should SMEs Consider Reddit Ads?
Here are a few reasons Startups might want to test Reddit Ads:
1. Hyper-Targeted Communities
Instead of relying purely on interest-based algorithms, Reddit allows you to directly target specific subreddits. Want to reach accountants? There’s a subreddit. Want to talk to eCommerce store owners? There’s a subreddit for that too.
2. Cost-Effective (For Now)
CPCs on Reddit tend to be lower than on Meta or Google — mainly because it’s underutilized in AU/NZ. For Startups running lean, this can mean more impressions and clicks for less spend.
3. Engaged, Curious Users
Reddit users are not mindlessly scrolling — they’re often searching for answers, advice, and products. If you can position your ad as helpful or insightful, it won’t feel intrusive.
4. Less Ad Fatigue
With fewer businesses using Reddit Ads, your brand isn’t competing in an oversaturated feed.
Reddit Ad Formats 101
Reddit offers a range of ad formats:
Promoted Posts: Appear in users' feeds like regular Reddit posts. You can include text, images, or videos.
Display Ads: More traditional banner-style ads, usually used by bigger brands.
Conversation Ads: These start a discussion in a targeted subreddit, letting users interact directly.
For Startups, Promoted Posts are the best place to start.
Best Practices for Reddit Ads
If you’re diving in, here are a few tips to make Reddit Ads work:
✅ Be transparent and honest. Reddit users hate being tricked.
✅ Match the tone of the subreddit. Don’t sound overly “salesman” or “pushy”.
✅ Add value. Think of your ad as starting a helpful conversation, not just pushing a product.
✅ Use detailed targeting. Narrow it down to just the subreddits that align with your audience.
✅ Test and learn. Try different headlines, creatives, and subreddit combos.
Who Is Reddit Not For?
If your product or service is extremely broad and doesn’t appeal to any specific niche, Reddit might not deliver great results. Likewise, if you don’t have the time to research communities or adapt messaging, it might be better to stick with more automated platforms.
Final Thoughts
Reddit Ads aren’t a magic bullet — but they’re a seriously underrated opportunity for Startups looking to stand out and connect with niche audiences. Especially in Australia and New Zealand, where adoption is still relatively low, there’s real potential to get ahead of the curve.
At Auditflow, we’re always testing new ad platforms and channels for our clients. If you're curious about Reddit Ads or want to explore if it’s the right fit for your business — feel free to reach out or check out our recent poll on LinkedIn.
