Have you noticed that trending ads are, well, trending? As product managers consider new and innovative ad units to build, it's important to look at what other brands are doing — which is why we wanted to highlight Reddit's new Trending Takeover ad unit.
Reddit’s recent launch is garnering media and marketing attention as a custom, user-friendly, native ad unit — one built in-house without a third party.
Reddit announced the public launch of its Trending Takeover ad product on March 9, 2020. The new ad units for mobile and desktop enable brands to appear as a promoted trend in Reddit’s Search tab and Popular feed for a full 24 hours.
Ads appear in Trending searches and in the Trending tiles at the top of Reddit’s mobile app listings.
Redditors who click on a Trending Takeover ad, such as the below takeover for Samsung Galaxy, are directed to a special landing page featuring paid promotional content at the top, with discourse from related subreddits (i.e., r/SamsungMobileUS) that align with the advertisers’ chosen keywords.
Reddit has not released Trending Takeover pricing, but a media buyer cited by AdWeek presumes the new unit will cost advertisers a minimum of $100K for a 24-hour campaign.
This is significantly less than the approximately $250K daily rate for Twitter’s Promoted Trend Spotlight, but far more than Reddit’s current minimum daily ad spend of $5 for its auction-based units.
While publicly released, Trending Takeover is not yet available programmatically on Reddit's self-serve platform. The unit is currently sold on a reservation-only basis.
Normally, it requires luck, effort, and money for brands to organically appear in the trending tab on Reddit — hence Reddit saw a monetization opportunity by offering advertisers a way to pay to be popular.
As Reddit states in its announcement: “Fads, trends, and movements get their start in Reddit communities every day. And as we invest in highlighting those trends for user visibility and participation, it presents a huge opportunity for advertisers looking to align with conversations in real-time.”
For instance, a brand could run a Trending Takeover on the day they’re most likely to become part of the trending section organically (say, tips for making weeknight dinners, promoted by Green Giant). Or, upon the launch of a new product or initiative, they could jumpstart their efforts by paying for a trending placement.
Reddit added more cache to the Trending Takeover origin story by citing its six-month beta tests with more than 15 partners across automotive, consumer tech, CPG, entertainment, and QSR verticals, including three distinctly different, well-known brands: Adobe, Spotify, and Method.
Reddit’s announcement focuses on its partnership with Method and features multiple visuals of their campaign.
Reddit didn’t create a promotional video for Trending Takeover (as Twitter did for its launch) but does share Method’s plant cleaning demo video to demonstrate the ad unit’s value.
The Reddit team also includes a quotation from Method’s VP of Brands in its announcement, along with the aforementioned video with Hilton Carter. Chen offers a compelling endorsement of Reddit’s ad unit.
Reddit appeals to data-loving performance marketers by citing Trending Takeover results, albeit without the third-party independent data Twitter provides for its Promoted Trend Spotlight.
Reddit states, “In aggregate, Beta partners saw an increase in surfaced conversations and a click-through rate two-times greater than the industry standard for social platforms.”
Advertisers should not use terms such as “Promoted” or “Promoted Stories,” which in this context are at best ambiguous and potentially could mislead consumers that advertising content is endorsed by a publisher site.
Using an earlier example from the Reddit app, this Trending Takeover could be changed from “Promoted” to “Promoted by Method” to avoid potential legal headaches.
Chris has worked in ad tech for over fourteen years in a variety of roles - giving him customer support, PM, and marketing perspectives from both the advertiser and publisher sides. He's the VP of Marketing at Kevel.